For a competitive firm, workers' marginal revenue product equals the marginal product of labor times the:
a. wage rate.
b. price of the firm's product.
c. interest rate.
d. firm's total revenue.
b
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Scooters are a normal good and buyers' incomes decrease. Which of the figures above best illustrates how this change affects the demand curve for scooters?
A) Figure A B) Figure B C) Figure C D) Figure D E) None of the above answers is correct because the decrease in income will affect the supply curve not the demand curve.
Suppose a monopoly is producing its profit-maximizing output level. Now suppose the government imposes a lump-sum tax on the monopoly, independent of its output
As a result the monopolist will increase the price of its product to cover its higher cost. Indicate whether the statement is true or false
In a command economy, the three economic questions are answered by which of the following?
a. The production and consumption choices made by sellers and buyers in decentralized markets. b. A cartel of major transnational corporations, government agencies, and consumer advocates. c. A trilateral commission of major corporations, elected officials, and economists d. A central authority such as a peoples' committee or a dictator.
The productivity table given below shows how many bushels of either wheat or rice can be produced in India and Canada with 1 unit of input.CountryWheat (bushels)Rice (bushels)India1010Canada4020To achieve gains from specialization and trade
A. India should export wheat to Canada and import Canadian rice. B. India should export rice to Canada and import Canadian wheat. C. Canada should produce both wheat and rice and not trade with India. D. India cannot offer any benefits to Canada from trading with her.