If the value of marginal product of the last worker hired is $24 and the wage rate is $25, then
A) more workers should be hired.
B) the worker should be fired.
C) the firm has hired the profit maximizing number of workers.
D) the firm is earning $1 of profit from this worker.
B
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An increase in government spending will lead to which of the following?
a. an increase in equilibrium GDP, a decrease in money demand, a decrease in the interest rate, and an increase in investment spending b. a decrease in equilibrium GDP, a decrease in money demand, an increase in the interest rate, and a decrease in investment spending c. an increase in equilibrium GDP, an increase in money demand, an increase in the interest rate, and an increase in investment spending d. a decrease in equilibrium GDP, a decrease in money demand, a decrease in the interest rate, and an increase in investment spending e. an increase in equilibrium GDP, an increase in money demand, an increase in the interest rate, and a decrease in investment spending
If total income remains the same but profits fall and real wages rise, the aggregate demand curve will most likely:
A. become flatter. B. become steeper. C. shift to the left. D. shift to the right.
If equilibrium GDP is $500 billion greater than full employment GDP and the multiplier is 2.5, there is an inflationary gap of
A. $100 billion. B. $200 billion. C. $250 billion. D. $500 billion.
Assume the total utilities corresponding to the first four units of a product consumed are 8, 12, 14, 15, respectively. The marginal utility of the third unit consumed is:
A. 2. B. 14. C. 4. D. 34.