Suppose a firm sells its product in a competitive market. If the ongoing wage rate in a competitive labor market is $30 and the market price of a firm's product is $2, then which of the following statements is true?
A) The firm should continue to hire workers until the marginal product of the last worker hired is 2 units.
B) The firm should continue to hire workers until the marginal product of the last worker hired is 5 units.
C) The firm should continue to hire workers until the marginal product of the last worker hired is 10 units.
D) The firm should continue to hire workers until the marginal product of the last worker hired is 15 units.
D
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What is the relationship between scarcity and shortage, as economists use the terms?
A) Scarcity and shortage cannot exist simultaneously. B) Shortages are the basic cause of scarcity. C) Scarcity creates shortages in the long run. D) Scarcity is relative while shortages are absolute. E) Scarcity is unavoidable but shortages are not.
This graph depicts the demand for a normal good.
Suppose Johnny was consuming a normal good at point A in the figure shown, but has just received a raise at work. Johnny's demand may:
A. be unaffected.
B. increase to point B.
C. increase to point C.
D. drop to zero.
Along a downward-sloping linear demand curve,
a. slope is constant and elasticity is changing b. slope is changing and elasticity is constant c. both slope and elasticity are constant d. both slope and elasticity are changing e. no generalizations can be made about slope
Answer the following statements true (T) or false (F)
1. Unemployment insurance is a form of in-kind transfer payment to reduce poverty. 2. The federal government employs an absolute rather than a relative measure to determine poverty. 3. The total number of people in poverty has changed little since the late 1960s. 4. The poverty rate for blacks is almost three times that for whites. 5. Poverty is a condition that randomly strikes all members of the population equally.