______ creates inefficiency in a labor market by preventing firms from hiring employees whose marginal revenue product is above the market wage
a. Efficiency wage
b. Labor union
c. Labor shortage
d. Discrimination
d
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Which of the following is an example of a barrier to entry? (i) A key resource is owned by a single firm. (ii) The costs of production make a single producer more efficient than a large number of producers. (iii) The government has given the existing monopolist the exclusive right to produce the good
a. (i) and (ii) only b. (ii) and (iii) only c. (i) only d. (i), (ii), and (iii)
Economic growth is shown by a shift of the production possibilities curve outward and to the right.
Answer the following statement true (T) or false (F)
Suppose an economy is characterized by the equations below: Price setting: P= (1 + m) (W/
A)Wage setting: W=AP(1 - u)Solve for the natural rate of unemployment if the markup (m) is equal to 4%.
Which of the following machines has the lowest user cost? Machine A costs $15,000 and depreciates at a rate of 25%, machine B costs $10,000 and depreciates at a rate of 20%, machine C costs $20,000 and depreciates at a rate of 10%, and machine D costs $17,000 and depreciates at a rate of 11%. The expected real interest rate is 0%.
A. Machine A B. Machine B C. Machine C D. Machine D