Describe the decision for a perfectly competitive employer in determining the profit maximizing quantity of labor to employ.
What will be an ideal response?
The profit maximizing quantity of labor to employ exists at that quantity where the marginal revenue product of labor (MRP) equals the wage rate (W). The MRP equals the marginal product of labor multiplied by the price of the output produced. This information as well as the wage is required to decide the optimal number of workers to employ. If the MRP > W then employ more workers until they're equal.
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The United Kingdom is
a. an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States. b. an advanced economy, and over the past century its rate of economic growth has been lower than that of the United States. c. a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States. d. a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States.
One explanation for the growth in the U.S. economy over the last 100 years is:
A. a large increase in human capital. B. Human capital was not the cause of growth in the United States over the last 100 years. C. a rapid decline in human capital. D. a small, incremental increase in human capital.
Which of the following is an example of predatory pricing?
A. In order to buy Microsoft Windows, you must also purchase Internet Explorer. B. Bus rides are cheaper for senior citizens than for other people. C. Prices are set low enough to drive other firms out of a market. D. Prices are set just high enough to prevent other firms from entering the market.
In the Keynesian model, which curve is vertical?
A. SRAS B. NS C. AD D. LRAS