The marginal productivity principle does not
A. assign higher prices to scarcer resources.
B. create incentives for firms to discriminate..
C. guide firms to use society’s resources efficiently.
D. distribute incomes unequally among society.
Answer: B
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Macroeconomic forces are a powerful explanation for changes in the size of the poverty population
Indicate whether the statement is true or false
Suppose the CPI was 104 in 1967, and suppose currently the CPI is 390 . According to the CPI, $10 in 1967 purchased the same number of goods and services as
a. $28.88 purchases today. b. $37.50 purchases today. c. $42.64 purchases today. d. $104.00 purchases today.
In order to hire additional laborers, a monopsony must
A. raise the wage rate. B. lower the supply of labor. C. advertise for the labor. D. do nothing.
If the nominal rate of interest is 12 percent and the real rate of interest is 3 percent, then the expected rate of inflation is
A. 18%. B. 15%. C. 12%. D. 9%.