Which of the following best describes the marginal product of labor for an additional employee in a landscaping firm?
A. The additional profits the firm earns because of that employee
B. The additional wages the firm must pay in labor costs because of that employee
C. The extra money the firm brings in because of that employee
D. The number of additional acres the firm can mow in a week because of that employee
Answer: D
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Taxing people according to their marginal valuations of a public good may be efficient, but it may not be fair if the ability to pay differs
a. True b. False
Economists agree that
a. neither high inflation nor moderate inflation is very costly. b. both high and moderate inflation are quite costly. c. high inflation is costly, but they disagree about the costs of moderate inflation. d. moderate inflation is as costly as high inflation.
An ultimatum game is:
A. the only game played by unions in reality. B. one in which one player makes an offer and the other player has the simple choice of whether to accept or reject. C. a repeated sequential game. D. one in which one player makes an offer and the other player has the choice of whether to accept or offer a counteroffer.
Briefly explain the benefits-received principle and why it does not work well for pubic goods. Give an example that is not in the text.
What will be an ideal response?