If the market price is $40 in a perfectly competitive market, the marginal revenue from selling the fifth unit is
A) $8.
B) $20.
C) $40.
D) $200.
Answer: C
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A wage differential between skilled and unskilled workers exists because skilled workers have higher marginal products than unskilled workers
a. True b. False Indicate whether the statement is true or false
When you specialize in a task that you do best, you are applying the:
a. law of supply. b. law of comparative advantage. c. law of demand. d. law of absolute advantage.
If the economy is self-regulating and in an inflationary gap,
A) wages and prices will fall. B) wages will rise, but prices will fall. C) wages and prices will rise. D) wages will fall, but prices will rise. E) neither wages nor prices will change.
The restrictive monetary policy followed by the Fed in the early 1980s
a. reduced both unemployment and inflation. b. reduced inflation significantly, but at the cost of a severe recession. c. reduced unemployment significantly, but at the cost of higher inflation. d. raised both unemployment and inflation.