If the total wages paid change from $200,000 to $250,000 when the quantity of labor employed increases from five to seven workers, the marginal wage is
A. $50,000.
B. $25,000.
C. $250,000.
D. $35,714.
Answer: B
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Marginal utility theory predicts that an increase in income means that the consumption of
A) all goods will increase. B) normal goods will increase and consumption of inferior goods will decrease. C) inferior goods will increase and consumption of normal goods will decrease. D) None of the above answers is correct.
Suppose all of the major computer manufacturers announced that beginning next month there would be major price reductions on their computers. This would cause the current demand for computers to:
a. increase. b. decrease. c. remain unchanged. d. increase and then decrease.
Answer the following statements true (T) or false (F)
1. The economic gains from expanding international trade are measured in hundreds of billions of dollars. 2. Some environmentalists worry that large firms may evade environmental protection laws by moving their production to countries with loose or nonexistent pollution standards, trading a clean environment for jobs. 3. Protectionism in international trade saves jobs in the specific industry being protected, but costs jobs in other unprotected industries. 4. A number of different studies have attempted to estimate the cost to consumers in higher prices per job saved through protectionism. The costs of saving jobs through protectionism can be high.
In the long run, if the Fed decreases the growth rate of the money supply,
a. inflation will be lower. b. unemployment will be higher. c. real GDP will be lower. d. All of the above are correct.