A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired; 32 when two workers are hired; 37 when three are hired; and 40 when four are hired. The farmer's product sells for $3 per unit and the wage rate is $13 per worker. The marginal revenue product of the second worker is
A. $24.
B. $8.
C. $9.
D. $15.
Answer: A
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A bond is a financial security that represents
A) the portion of profits paid to shareholders. B) ownership in a corporation. C) the interest rate paid on a share of stock. D) a promise to repay a fixed amount of funds.
An important explanation for the current account deficit and capital account surplus in the United States is that
a. we buy fewer goods from foreigners than they buy from us, and foreigners find the United States an attractive place to invest. b. we buy more goods from foreigners than they buy from us, and foreigners find the United States an attractive place to invest. c. we buy fewer goods from foreigners than they buy from us, and Americans find foreign countries an attractive place to invest. d. we buy more goods from foreigners than they buy from us, and Americans find foreign countries an attractive place to invest.
In the United States, labor earnings are about what percent of total income?
a. 75 percent b. 70 percent c. 67 percent d. 50 percent
Which of the following is an example of an investment in human capital?
A. A chemical firm supports research to develop new chemicals. B. A firm pays for workers to take college classes. C. A firm replaces manually controlled production with a computer controlled procedure. D. A firm purchases new equipment for a manufacturing process.