When economists say that the demand for labor is a derived demand, they mean that it is
A. related to the demand for the product or service labor is producing.
B. based on the assumption that workers are trying to maximize their money incomes.
C. dependent on government expenditures for public goods and services.
D. based on the desire of businesses to exploit labor by paying below equilibrium wage rates.
Answer: A
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If the value that people, on average, receive from a common property exceeds the marginal cost of its use, then
a. more people will use the common property. b. social gain is as large as possible. c. the common property creates zero economic rent. d. demand for the common property will fall.
Which of the following is a credit in the U.S. current account? a. A U.S. consumer buys a TV made in Malaysia
b. Singapore Airlines buys a jumbo jet made in the United States. c. British investors purchase U.S. government bonds. d. An American citizen flies to Lithuania on the Lithuanian Airlines.
If an employer cannot distinguish the ability of workers a separating equilibrium will result
Indicate whether the statement is true or false
Refer to the information provided in Table 22.2 below to answer the question(s) that follow. Table 22.2 PointAggregate Income (Y)Aggregate Consumption (C) A 10 14 B 20 23 C 30 25 D 40 26 E 50 34 F 60 39The data in the table was used to estimate the following consumption function: C = 12 + 0.4YRefer to Table 22.2. The error for point D is equal to
A. -2. B. -1. C. +2. D. +4.