A firm finds that it must increase wages to attract extra workers. The firm will hire labor up to the point where the marginal
A. revenue product equals the additional cost of hiring an extra worker.
B. revenue product of labor is greater than the wage rate.
C. product of labor equals the wage rate.
D. revenue product of labor starts to decline.
Answer: A
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Pillar(s) of the planned socialist economy:
a. State ownership b. Planned resource allocation c. Leading role of the party d. All of the above e. None of the above
If an economy experiences deflation, the real interest rate
A) will be less than the nominal interest rate. B) will be negative when the nominal interest rate is positive. C) will be greater than the nominal interest rate. D) will be equal to the deflation rate, so long as the nominal interest rate is positive.
Which combination of monetary and fiscal policies might policymakers elect to ward off a potential recession?
A) Fed sale of bonds combined with tax rate increases B) Fed sale of bonds combined with tax rate decreases C) Fed purchase of bonds combined with tax rate increases D) Fed purchase of bonds combined with tax rate decreases
What are the effects of a tariff on a good?
What will be an ideal response?