The wage rate for widget makers is currently $25 per hour and Ajax hires 20 widget makers. If the wage rate were decreased to $20, what would happen to the marginal revenue product for labor at Ajax?
A) It would remain the same.
B) It would increase since Ajax's demand for labor curve will shift.
C) It would increase since the price of widgets would decrease.
D) It would decrease since Ajax will hire more workers.
D
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In calculating GDP, we must
A) add the market value of imports and subtract the market value of exports. B) add the market value of exports and subtract the market value of imports. C) exclude net exports of goods and services (NX). D) add the value of the goods produced outside of the United States by American firms. E) subtract the market value of imports, because these goods are produced in a country other than the United States, and subtract the market value of exports, because these goods are consumed in a country other than the United States.
An increase in the price of Heinz ketchup is likely to cause:
A. an increase in the demand for Hunt's ketchup, due to a change in the price of a substitute good. B. an increase in the demand for Hunt's ketchup, due to a change in preferences. C. a decrease in the demand for Hunt's ketchup, due to a change in preferences. D. an increase in the demand for Hunt's ketchup, due to a change in the price of a complementary good.
Constant dollars are
A. the same as current dollars. B. when an individual does not receive a cost of living increase. C. what nominal GDP is measured in. D. dollars corrected for general price level changes.
What is the domestic exchange equation of Germany?
