When an individual's MRP is not measurable, his or her market wage is usually determined by
A. The individual's comparable worth.
B. The selling price of his or her output.
C. His or her opportunity wage.
D. The individual's MPP.
Answer: C
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Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
A. 120 LCD TVs that must be forgone to produce 20 additional OLED TVs. B. 30 LCD TVs that must be forgone to produce 40 additional OLED TVs. C. 20 OLED TVs that must be forgone to produce 30 additional LCD TVs. D. 40 OLED TVs that must be forgone to produce 120 additional LCD TVs.
The principal way in which inflation imposes costs upon the members of a society is by
A) destroying the incentive to consume. B) increasing the cost of planning correctly. C) lowering wages relative to prices. D) making goods more scarce. E) raising the percentage of the population below the official poverty line.
Credit risk is the risk that
A) an insufficient number of borrowers will apply for loans or credit. B) interest rates will rise after a loan has been granted. C) interest rates will fall after a loan has been granted. D) borrowers might default on their loans.
Depositors have a strong incentive to show up first to withdraw their funds during a bank crisis because banks operate on a
A) last-in, first-out constraint. B) sequential service constraint. C) double-coincidence of wants constraint. D) everyone-shares-equally constraint.