Which of the following is the most accurate definition of a worker's "marginal revenue product"?
a. The change in the firm's profits as the result of hiring an additional worker.
b. The change in the firm's total revenue as the result of hiring an additional worker.
c. The change in the firm's output as the result of hiring an additional worker.
d. The change in the firm's cost as the result of hiring an additional worker.
b
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In which of the following situations would a positive externality most likely be involved?
A. Shawn is sitting at home one day when she gets a telephone call, informing her that she has won $10,000 in a contest she entered three months ago. B. There are eight houses in the neighborhood where Rodney lives. Rodney likes nice-looking yards, and last week his neighbors began to beautify their yards. C. Willy needs eight hours of sleep each night to feel good. Last night he got eight hours of sleep. D. Patrick received an A on a biology exam. He is feeling better about his chances of getting admitted to medical school.
The supply of paintings by Van Gogh is most likely to be
a. of infinite elasticity because supply is limited b. of high elasticity because supply is limited c. elastic because the paintings are luxury goods d. inelastic because supply is limited e. unit elastic
Suppose that a hog-producing firm has been dumping its wastes into the local river. The government taxes the sale of hogs to pay for the cost of the river cleanup. As a result
a. more hogs are produced and the price falls b. more hogs are produced and the price increases c. fewer hogs are produced and the price falls d. fewer hogs are produced and the price increases e. quantity produced doesn't change but the price increases
Due to the private nature of bank ownership, there is often a difference between bankers' goals and macroeconomic objectives
a. True b. False Indicate whether the statement is true or false