If a firm hires 10 workers at $6 per hour each and the 11th worker will be hired only if the wage rate falls to $5 per hour, the marginal wage rate must be
A. -$5.
B. $5.50.
C. -$5.50.
D. $5.
Answer: A
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Consider a law that limits women's access to certain "dangerous" occupations like coal mining and military combat service. Such a law would likely reduce women's wages because:
a. women would be overqualified for "non-dangerous" jobs. b. labor supply in female-intensive occupations would increase. c. women would be less likely to obtain college degrees. d. comparable worth would no longer exist between men's and women's occupations.
According to Say's law, there cannot be overproduction of goods and services because:
A. planned aggregate expenditures sometimes fall short of total output. B. prices and wages are "sticky" or inflexible in the downward direction. C. demand creates its own supply. D. supply creates its own demand.
The equation of exchange is M× V = P× Y.
Answer the following statement true (T) or false (F)
When the MPC = 0.6, the multiplier is
A) 0.40. B) 2.50. C) 1.67. D) 6.00.