A firm will find it profitable to hire workers up to the point at which their
A. marginal resource cost is equal to their MRP.
B. MP is equal to their MRP.
C. marginal resource cost equals their wage rate.
D. wage rate equals product price.
Answer: A
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Consumption smoothing refers to ________
A) the impact of future income on current consumption and of current income on future consumption B) the constancy of consumption over time C) the impact of current consumption on future income and of future consumption on current income D) the tendency of consumers to adopt similar spending habits
The marginal revenue product of labor declines as the number of workers increases because
A) firms hire the most efficient workers first and the least efficient workers last. B) firms must lower prices for the final product when they want to sell more units. C) of the law of diminishing marginal product. D) of diseconomies of scale.
Suppose Iceland goes from being an isolated country to being an exporter of coats. As a result,
a. consumer surplus increases for consumers of coats in Iceland. b. producer surplus increases for producers of coats in Iceland. c. total surplus remains unchanged in the coat market in Iceland. d. it is reasonable to infer that other countries have a comparative advantage over Iceland in coat production.
Which of the following trends had been happening in the banking industry even before the Financial Crisis of 2007-2008?
A. An expansion in the number of banks and thrifts B. A consolidation of services offered by financial institutions C. A decrease in the integration of global financial markets D. An increase in the amount of savings held by banks relative to other financial institutions