The marginal revenue product of labor is:
a) The additional revenue a firm receives from hiring one more worker.
b) Equal to the marginal physical product of labor times the wage rate.
c) Equal to the price of the product times the wage rate.
d) The additional output from hiring one more worker.
Answer: a) The additional revenue a firm receives from hiring one more worker.
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A) higher than B) lower than C) same as D) None of the above
The statistical discrepancy in the balance of payments
a. is always positive b. is always negative c. is always zero d. is either positive, negative, or zero e. is indeterminate
Which statement is true?
A. Private business firms are illegal in China. B. In China today, there is strict adherence to the communist credo, "From each according to his ability, to each according to his needs." C. Major economic reforms in China in the late 1970s and early 1980s created a much more market oriented economy than a centrally planned one. D. None of the statements are true.
Economic analysis indicates that high tax rates will
a. reduce productive activity. b. retard capital formation. c. promote wasteful use of resources. d. all of the above.