If MRP = MLC, the firm
a. is employing the optimal quantity of workers
b. should decrease the quantity of labor it employs
c. should lower the wage rate
d. should increase the quantity of labor it employs
e. should raise the wage rate
A
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The concept of "lender of last resort" is that when
a. lending decreases, the Fed will be the last to resort to higher interest rates. b. borrowing increases, the Fed will be the last to increase lending. c. commercial banks are hesitant to lend, the Fed will step in and increase reserves. d. a borrower has tried everyone else, the Fed will lend directly to them.
Suppose that in a month the price of a gallon of milk increases from $2 to $2.50. At the same time, the quantity of gallons of milk demanded decreases from 100 to 80. The price elasticity of demand for gallons of milk (calculated using the midpoint formula) is approximately:
A. 0.11. B. 0.2. C. 1. D. 1.2.
Which of the following situations will arise in the domestic market following the imposition of a voluntary export restraint?
A. imports increase, domestic production increases, prices increase B. imports decrease, domestic production increases, prices increase C. imports increase, domestic production decreases, prices decrease D. imports decrease, domestic production increases, prices decrease
The total amount of income earned by U.S. resource suppliers in a year, plus taxes on production and imports, is measured by:
A. gross domestic product. B. national income. C. personal income. D. disposable income.