Which of the following is TRUE regarding the real wage rate? The real wage rate
I. is always greater than the money wage.
II. measures the quantity of goods and services an hour's work can buy.
A) only I
B) only II
C) both I and II
D) neither I nor II
B
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Economists refer to the ideal combination of the price a firm should charge and the quantity a firm should produce as
A) profit maximization. B) maximized production. C) perfect competition. D) optimus prime.
When a firm uses technological improvements to increase output from the same amount of inputs, the result is
A) a new production function. B) losses. C) guaranteed profits. D) diseconomies of scale.
Labor productivity increases when
A. output increases at the same rate as the labor force increases. B. output increases faster than population increases. C. the population increases. D. output increases even if the labor force has decreased.
Assume some gain and some lose as the result of a change. If we can demonstrate the value of the gains are less than the value of the losses, then we say the change is
A. unequivocally Pareto optimal. B. potentially efficient. C. inefficient. D. technically efficient.