A perfectly competitive firm will hire labor as long as the marginal revenue product of labor is
A. equal to the going wage.
B. zero.
C. greater than the going wage.
D. less than the going wage.
Answer: C
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Adam Smith’s discussion of the production in a pin factory illustrates the law of comparative advantage.
Answer the following statement true (T) or false (F)
The institutions that bring together savers, borrowers, investors, and insurers in a set of interconnected markets where people trade financial products is called the:
A. financial system. B. money system. C. market for interest rates. D. market for loanable funds.
Private property rights imply that people can own things, and they can do what they want with what they own even if they infringe on the private property rights of others
a. True b. False Indicate whether the statement is true or false
The money supply would tend to rise if:
a. banks decide to keep more excess reserves and people convert more of their demand deposits to currency. b. banks decide to keep more excess reserves and people deposit currency in their demand deposit accounts. c. banks decide to keep fewer excess reserves and people deposit currency in their demand deposit accounts. d. banks decide to keep fewer excess reserves and people convert more of their demand deposits to currency.