A firm's marginal revenue product of labor curve is:
a. a horizontal straight line at the market wage rate
b. equivalent to its demand for labor curve.
c. a vertical line at the market price of the good it produces.
d. equivalent to its supply of labor curve.
b
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Nonunion labor is a substitute for union labor, so when the minimum wage ________, the demand for union labor ________
A) rises; decreases B) decreases; increases C) decreases; decreases D) rises; increases E) rises; remains the same
An example of a good that is not excludable is:
A. fish in the ocean. B. wireless connection to the Internet. C. a movie in a theater. D. a candy bar.
Which of the following is true?
A. Investments that pay a return over a longer time horizon generally have less risk. B. Risk-free investments are the best benchmark for measuring the risk of all investment strategies. C. Investments with a greater variance in the size of the future payoff generally pay a lower expected return. D. Investments with higher risk generally have a higher expected return than risk-free investments.
Recall the Application about productivity in the nation of Latvia in the 1990s to answer the following question(s). According to this Application, workers in the European Community were more productive than workers in Latvia in the 1990s, yet the European Community still purchased products from Latvia. This is because Latvia ________ in the production of the products it sold to the European Community.
A. had an absolute advantage B. had a comparative advantage C. used fewer resources D. had a higher opportunity cost