The value of a worker's marginal product:
A) is the increment in total cost of a firm when the worker is hired.
B) is the additional revenue that the worker brings in to the firm.
C) is the maximum price at which a product can be sold in a market.
D) equals the average product of a firm divided by the marginal product of the worker.
B
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In the short run, a perfectly competitive firm will shut down if
A) it incurs any economic loss. B) price equals average cost. C) total revenue is less than total variable cost. D) total revenue is less than total fixed cost.
A decrease in the money supply shifts the aggregate __________ curve to the __________
A) demand; left B) demand; right C) supply; left D) supply; right
The nominal exchange rate is the
A) domestic currency price of foreign currency. B) foreign currency price of domestic currency. C) price of domestic goods in terms of foreign goods. D) price of foreign goods in terms of domestic goods.
Ally owns a shoe store. The market wage is $10 per hour, and the cost of capital is $2 per week for every $1000, of capital borrowed. Consider the isocost line associated with spending $8000, per week, and let the y-axis be the amount of capital borrowed in increments of $1000. Which of the following is not true?
A. If Ally employs 600 hours of work, she can borrow $1 million of capital. B. If Ally employs 400 hours of work, she can borrow $3 million of capital. C. The slope of the isocost line is ?5. D. If Ally borrows no capital, she can employ 800 hours of work. E. If Ally employs no workers, she can borrow $4 million of capital.