Marginal cost can be expressed as the ration of the price of labor and the Marginal Product of Labor
a. only when labor is held constant.
b. only when labor is the only variable input.
c. wether labor is held constant or not.
d. never.
b. only when labor is the only variable input.
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Indifference curves show all combinations of commodities that are equally desirable to the consumer.
Answer the following statement true (T) or false (F)
Which of the following countries has a long history of foreign trade and a high level of trade?
a. Brazil b. India c. Sweden d. United States
What characteristic of a perfectly competitive firm that causes it to be a price taker?
A. many buyers and sellers B. homogeneous product C. free entry and exit D. Both many buyers and sellers and homogeneous product are correct.
The existence of a lender of last resort creates moral hazard for bank managers because:
A. they have an incentive to take too much risk in their operations. B. they are less likely to apply for a direct loan from the central bank. C. officials are likely to undervalue the bank's portfolio of assets. D. banks seek loans from the central bank only after exploring other options.