The marginal revenue product (MRP) establishes
A. A lower limit to profit on the sale of a unit of output.
B. A lower limit to the wage rate demands of laborers.
C. An upper limit to the productivity of a worker.
D. An upper limit to the wage rate an employer is willing to pay.
Answer: D
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The value of the best alternative that is forgone is known as:
a. marginal cost. b. marginal benefit. c. explicit cost. d. opportunity cost.
Professor Tabarrok suggests that the most important thing to understand about the AD curve is that:
A. changes in monetary or fiscal policy are incapable of shifting the AD curve. B. changes in inflation can rotate the AD curve. C. changes in spending growth can shift the AD curve. D. changes in real GDP growth cause movement along the AD curve.
If a consumer views the two goods they consume as perfect substitutes, the optimal bundle will be a corner solution. Explain
What will be an ideal response?
Nominal values are measured in
a. constant prices. b. dollars. c. actual prices. d. highest prices.