Figure 10.1 depicts a firm's marginal revenue product curve. If the prevailing hourly wage decreases:
A. the marginal revenue product curve shifts upward.
B. the marginal revenue product curve shifts downward.
C. the marginal revenue product curve does not shift, but there is a movement upward along the curve.
D. the marginal revenue product curve does not shift, but there is a movement downward along the curve.
Answer: D
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Net investment is the
A) total amount of gross investment minus depreciation. B) value of software and other network related products. C) profit or loss in the stock market. D) value of the depreciated capital multiplied by the changes in the price level.
When an economist considers welfare evaluations, he is looking at
A) whether a policy increases social welfare. B) the ability of an economy to take care of the unemployed. C) price inertia. D) new open economy macroeconomics.
A monopoly might produce less than the socially optimal amount of pollution because
A) it likes to be a good citizen. B) it sets price above marginal cost. C) it earns economic profit. D) it internalizes the external costs.
When a resource has a perfectly inelastic supply curve
A) the amount of economic rent for this resource is determined by its supply. B) the amount of economic rent for this resource is determined by demand for the resource. C) the amount of economic rent for this resource is determined by the government. D) there is no economic rent being earned by this resource.