The optimal hiring rule is to employ labor up to the point where:
A. wage = MFC.
B. wage = MP.
C. wage = MR
D. wage = MRP
Answer: D
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An asset is liquid if
A) it earns interest. B) it is backed by a government guarantee. C) it can be exchanged for other items of value without high transaction costs. D) All of the above are correct.
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
According to the graph shown, if the government restricts trade, area G represents:
A. quota rents. B. transferred surplus. C. government tax revenues. D. deadweight loss.
A textile firm closes a plant in Massachusetts and transfers production to a plant in South Carolina, where the firm can take advantage of cheaper labor. The plant supervisor at the Massachusetts plant is given the opportunity to move to South Carolina to become the plant supervisor at that plant. He turns down this opportunity because of family obligations. While he is searching for a new job he would be classified as
A. frictionally unemployed. B. structurally unemployed. C. cyclically unemployed. D. not in the labor force because he turned down the opportunity to relocate.
The largest trading partner of the U.S. in 2012 was:
A. China B. Japan C. Mexico D. Canada