A firm operating in a purely competitive labor market has the following marginal revenue product schedule.WorkersMRP1$24222320418516614712If the wage rate decreases from $17 to $13, by how much will the firm expand employment?
A. 5 workers
B. 4 workers
C. 3 workers
D. 2 workers
Answer: D
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If all government budgets are balanced, and S is greater than I, then
A) the net international investment position must be positive. B) the financial account must be positive. C) the financial account must be negative. D) the net international investment position must be negative. E) Both A and B.
The transactions demand for money increases when more people want to hold some of their wealth in the form of money to reduce the risks associated with unexpected emergencies
a. True b. False Indicate whether the statement is true or false
Compared to the severe recession of 1981-1982, the growth of real GDP during the first two years of recovery from the 2008-2009 recession was
a. much more rapid and the unemployment rate fell by a smaller amount after the more recent recession. b. slower and the unemployment rate fell by a smaller amount after the more recent recession. c. more rapid but the unemployment rate fell by a smaller amount after the more recent recession. d. similar and the decline in the rate of unemployment was almost identical during the recovery from each of these recessions.
Under a progressive tax system, the marginal tax rate could be equal to the average tax rate only when a taxpayer
a. has a very high income. b. has a very low income. c. is self-employed. d. invests in a retirement plan.