If the credits for a principles of economics section is three units and an instructor teaches two sections with 100 students in each and tuition and fees at your university are $40 per unit. If the instructor is paid $ 30,000 to teach both classes, should the university hire the instructor?
A. Yes, the MRP of the instructor is higher than the wage.
B. Yes, the wage is higher than the instructor's MRP.
C. No, the MRP of the instructor is higher than the wage.
D. No, the wage is higher than the instructor's MRP.
Answer: D
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A tariff is which type of tax?
(a) Progressive (b) Regressive (c) Proportional (d) Neutral
The interest rate effect predicts that higher prices:
A. make it more expensive to borrow, leading to higher interest rates and less investment. B. make people worse off by reducing the value of their wealth, leading them to save more and spend less. C. increase borrowing, leading to lower interest rates and more investment. D. increase borrowing, leading to higher interest rates and less investment.
Quantity Decision
What will be an ideal response?
Research confirms that government provision of infrastructure:
A. promotes economic growth. B. increases human capital. C. leads to reduced spending on research and development. D. hinders economic growth.