Applied to perfectly competitive labor markets, the marginal principle tells firms to hire workers until:
A. the marginal revenue product of the last worker hired equals the wage.
B. marginal productivity begins to diminish.
C. average total costs are minimized.
D. the price of the product equals the wage of the worker.
Answer: A
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In the Keynesian system, an increase in the money stock would
a. increase the interest rate, which, in turn, would increase aggregate demand and income. b. decrease the interest rate, which, in turn, would decrease aggregate demand and income. c. decrease the interest rate, which, in turn, would increase aggregate demand and income. d. decrease the interest rate but would have no effect on aggregate demand and income.
The text compares two studies on the profitability of slavery: one by Phillips and the other by Conrad and Meyer. The main reason for the difference in their results is:
a. Phillips failed to account for the effect of productivity gains in the concerned period. b. Conrad and Meyer had better data on slave prices. c. Conrad and Meyer used data from both northern and southern farms. d. Phillips assumed that cotton prices were falling during the antebellum period.
When a society is more equal:
A. the more the economy grows, so the best economy is the most equal. B. the more everyone gains when the economy improves, but that doesn't mean the most equal society is the best society. C. economic growth will create imbalance, and the government will need to work to equalize incomes. D. economic growth will provide the most resources for its disadvantaged members .
There are several reasons why incomes are unequal, including differences in luck, experience, and schooling
a. True b. False Indicate whether the statement is true or false