Which of the following statements is true?
A. Marginal revenue product is the extra revenue generated to the firm from the production of one more unit of output.
B. Marginal factor cost is the extra cost to a firm of employing one more unit of a factor of production.
C. The demand curve for a perfectly competitive employer is horizontal at the market wage rate.
D. The supply curve of labor is upward sloping because of the law of diminishing marginal productivity.
Answer: B
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A) $1. B) $2. C) $3. D) $4.
Which is not one of the four basic questions used by economists to break down problems?
A. What do others think? B. What are the trade-offs? C. How will others respond? D. Why isn't everyone already doing it?
Consider the indifference curve map and budget constraint for two goods, X and Y. Suppose the good on the horizontal axis, X, is normal. When the price of X increases, the substitution effect
a. and income effect both cause an increase in the consumption of X. b. causes a decrease in the consumption of X, and the income effect causes an increase in the consumption of X. However, the substitution effect is greater than the income effect. c. causes an increase in the consumption of X, and the income effect causes a decrease in the consumption of X. However, the substitution effect is greater than the income effect. d. and income effect both cause a decrease in the consumption of X.
Which type of audit evaluates the efficiency and effectiveness of organizational activities?
a. financial statement audit b. salary audit c. operational audit d. compliance audit e. integrated audit