A profit-maximizing firm will:
A. expand employment if marginal revenue product equals marginal resource cost.
B. reduce employment if marginal revenue product equals marginal resource cost.
C. reduce employment if marginal revenue product is less than marginal resource cost.
D. expand employment if marginal revenue product is less than marginal resource cost.
Answer: C
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The above figure depicts a short-run production function for Albert's Pretzels. The marginal productivity of labor
A) rises then falls as the amount of capital increases. B) falls then rises as the amount of labor increases. C) is greater than or equal to the average productivity of labor for all amounts of labor. D) is less than or equal to the average productivity of labor for all amounts of labor.
Which of the following is NOT considered to be a benefit of unionism?
A) increased featherbedding B) greater workplace safety C) higher workforce stability D) provision of arbitration and grievance procedures
If each taxpayer is obliged to pay the same tax—a fixed sum of money—then the tax is
a. progressive b. proportional c. income based d. poll or head based e. excise based
Karl Marx and Friedrich Engels said
A. "The theory of the Communists may be summed up in the single sentence: Abolition of private property." B. "The vice of capitalism is that it stands for the unequal sharing of blessings; whereas the virtue of socialism is that it stands for the equal sharing of misery." C. "It is not the employer who pays wages-he only handles the money. It is the product that pays wages." D. "Capital is past savings accumulated for future production."