If Tie-Dyed T-Shirts is currently employing labor so that the wage is less than the marginal revenue product of labor, it must also be true that
A. the price of the product must be greater than marginal cost.
B. total revenues would be greater than total costs.
C. the price of the product must be less than marginal cost.
D. the wage is greater than marginal cost.
Answer: A
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If all of the money currently spent on redistribution in the United States were directly transferred to the poor _____
a. it could turn the hard-core poor into the marginal poor b. it would not turn the hard-core poor into the marginal poor c. it is unclear what the effect would be on the hard-core poor d. the income of the poor would be raised above the current national average
Which of the following is the prime objective of an industrial policy for any country?
a. To secure a leading global role for selected domestic industries b. To promote and encourage the import of goods and services c. To secure the interests of migrant workers d. To encourage specialization of labor e. To ensure a high level of competition for domestic firms
If Dell Computer finds that its marginal cost exceeds its marginal revenue on a model of laptop, then to maximize profit, it will
a. increase output if it is a price searcher, but this may not be proper if it is a price taker. b. increase output if it is a price taker, but this may not be proper if it is a price searcher. c. decrease output, regardless of whether it is a price taker or a price searcher. d. increase output, regardless of whether it is a price taker or a price searcher.
The exchange rate for the Mexican peso changes from $1 = 5 pesos to $1 = 6 pesos. This change will lead to:
A. U.S. goods becoming less expensive for Mexicans B. Mexican goods becoming more expensive for Americans C. An increase in U.S. exports to Mexico D. A decrease in U.S. exports to Mexico