A perfectly competitive employer of an input will maximize profits from the employment of the input by equating:
a. the value of the marginal product of the input with the price of the output.
b. the marginal product of the last unit of the input employed with the input price.
c. the input price with the price of the product produced.
d. the marginal revenue product of the input with the input price.
e. the marginal product of the last unit of the input employed with the price of the product produced.
d
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If individuals save less because inflation lowers returns on savings, this should ________ real interest rates and ________ investment expenditures
A) raise; increase B) raise; reduce C) lower; increase D) lower; reduce
Referring to the table above, the present discounted value of initial wealth plus total income is ________
A) $67,308 B) $71,200 C) $70,400 D) $68,462
If the Bureau of Labor Statistics changed the way it calculates the consumer price index (CPI) so as to take into account product quality changes and the changing mix of products and services purchased by the average family, the result would most likely
A. show a higher rate of inflation. B. cause an increase in Social Security payments. C. cause higher wage increases for union employees with contracts that specify automatic wage boosts when the CPI rises. D. show a lower rate of inflation.
A productivity-enhancing innovation has the effect of
A. shifting a demand curve to the right. B. shifting a supply curve to the right. C. shifting a demand curve to the left. D. shifting a supply curve to the left.