Competitive firms hire workers until the additional benefit they receive from the last worker hired is equal to (i) the additional cost of that worker. (ii) the wage paid to that worker. (iii) the marginal product of that worker
a. (i) only
b. (iii) only
c. (i) and (ii) only
d. (ii) and (iii) only
c
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Labor productivity, real GDP per labor hour, increases if
A) saving and investment cause an increase in the quantity of capital per worker. B) there is an increase in the accumulation of human capital. C) new technologies are continuously discovered. D) All of the above answers are correct.
If the wage rate is fixed at a certain level, the:
a. total wage cost curve is horizontal. b. total wage cost curve is a straight upward sloping line. c. MP must be constant. d. total wage cost curve will increase at an increasing rate. e. total wage cost curve will increase at a decreasing rate.
The net loss in welfare from a quota is proportionately larger than for a tariff because: a. it does not result in government revenue
b. the loss in consumer surplus is greater than the gain to producers and the government. c. it prevents nations from fully realizing their competitive advantage. d. it brings about higher prices and revenues to domestic producers.
Indifference curves are steeper on the right and flatter on the left
a. True b. False Indicate whether the statement is true or false