Let MP = marginal product, P = output price, and W = wage, then the equation that represents the condition where a competitive firm would hire another worker is
A) P × MP > W. B) P × MP = W. C) P × W > MP. D) P × MP < W.
A
You might also like to view...
If the Fed is concerned about a possible recession, it ________ the federal funds rate, which ________ the quantity of money and ________ the amount of bank loans
A) raises; decreases; decreases B) lowers; decreases; decreases C) lowers; increases; decreases D) raises; increases; increases E) lowers; increases; increases
Assume the federal government collects $20 billion in taxes and spends them on the public. If the money multiplier is 2.5, bank reserves
A) and the money supply still increase by only $20 billion. B) increase by $20 billion and the money supply increase by $50 billion. C) and the money supply both increase by $50 billion. D) and the money supply are unaffected.
If a country has a high level of income, it:
A. has large amounts of physical and human capital. B. must be maintaining all natural resources. C. must be rapidly increasing its income each year. D. must be increasing all its natural resources.
Which of the following examples will have a fall in revenue?
a. When the price of hamburger buns decreases 10 percent, sales increase 12 percent. b. When the price of ice cream decreases 4 percent, sales increase 8 percent. c. When the price of lemons decreases 5 percent, sales increase 3 percent. d. When the price of salsa decreases 8 percent, sales increase 8 percent.