The profit-maximizing firm should continue hiring additional labor as long as:
a. MRC < MRP
b. MRC > MRP.
c. MRC = MRP.
d. the MP of labor > 0.
a
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Given a one-year Canadian bond with a yield of 8 percent, what will be the U.S. investor's rate of return at maturity if the Canadian dollar appreciates 10 percent against the U.S. dollar?
a. 2 percent b. 8 percent c. 10 percent d. 18 percent e. 25 percent
The opportunity cost of purchasing an item is
a. the number of hours needed to earn money to buy it. b. the next best thing you could have done with the time and money spent. c. always less than the dollar value of the item. d. always equal to the dollar value of the item. e. just the time required to buy it.
In an economy with a fixed exchange rate, when the market forces try to change the exchange rate, the government:
A. often has to deal with an unhappy domestic population who are constantly dealing with shortages or surpluses of their currency. B. declares it can't change, and holds it constant. C. must buy or sell its currency using its own reserve to bring equilibrium in the market to where it has "fixed" it. D. None of these statements is true.
In the former USSR, state planners decided what was to be produced. They passed orders down to factories, allocating raw materials, workers, and other factors of production to them. This is an example of (a):
A. market economy. B. corporation. C. government as a referee. D. command economy.