A profit-maximizing restaurant owner will hire more busboys to keep more tables clean and quickly available to new customers, as long as the
a. marginal product of busboys exceeds the marginal product of other employees.
b. hourly wage of busboys is lower than that of cashiers and cooks.
c. marginal revenue product of busboys exceeds their wage rate.
d. wage of busboys exceeds the wage of other employees.
C
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Wages are paid to ________ and interest is paid to ________
A) entrepreneurs; capital B) labor; capital C) labor; land D) entrepreneurs; land E) labor; entrepreneurs
In the above figure, which of the following is TRUE regarding the movements from point A to B and from point C to D?
I) The movement from point A to B shows that the economy has chosen to produce 100 more jets. II) The movement from point C to D shows that the economy has chosen to produce 100 more jets. III) The movement from point A to B and from point C to D have the same opportunity cost. A) I and II B) I and III C) II and III D) I, II and III
Choose the best statement
A) GDP equals aggregate expenditure and equals aggregate income. B) An increase in government purchases increases aggregate expenditure but does not change GDP. C) An increase in compensation of employees increases aggregate income but does not change GDP. D) GDP always equals aggregate expenditure and sometimes equals aggregate income.
Regulation Q put a ceiling on
A) bank loan rates. B) loan rates at all depository institutions. C) deposit rates. D) the proportion of a savings-and-loan's assets made up of loans other than mortgages.