If the value of marginal product of a worker is $40 and the marginal product of the worker is 8 units, the market price of the good he produces is:
A) $2.
B) $5.
C) $8.
D) $10.
B
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Consider two individuals, Jay and Randy, and their decision to serve in the military. The accompanying tables show their opportunity costs of supplying military service. The government has determined that it needs 12 total hours of military service per week from these two individuals.
(i) Suppose the government drafts Jay and Randy, requiring each individual to serve 6 hours per week and paying them $15 per hour. What is society's cost of the 12 hours of military service?
(ii) What is the least possible cost to society of having 12 hours served per week?
(iii) What policy could the government use to obtain the required 12 hours of military service at the least possible cost to society?
Real wages would rise if the prices of goods and services
A. rose more rapidly than nominal wage rates. B. and wage rates both fell. C. rose less rapidly than nominal wage rates. D. and wage rates both rose.
International Reserve assets are comprised of gold, foreign exchange, and IMF special drawing rights
Indicate whether the statement is true or false
Harry owns a hot dog stand near campus. When a pizza stand opens next to Harry's hot dog stand, he finds that he has to lower the price of his hot dogs in order to attract the same number of customers. Explain why this is the case