An employer would never operate on the upward-sloping part of an MRP curve because
a. he would not be maximizing profits.
b. he would be hiring workers at wages above MRP.
c. the number of workers is too large to get economies of scale.
d. he would then have too little capital per worker.
a
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A condition for the use of eminent domain is that the property being taken
A) must remain the property of the government entity which authorized the use of eminent domain. B) must be intended for public use. C) must be undeveloped property. D) must be considered blighted property.
Suppose that the effective return to a U.S. investor from buying a U.K. bond is 5.55%. Forward and spot exchange rates ($/£) are 2.10 and 2.00 respectively. The interest rate on the U.K. bond is most likely equal to:
A) 5.45% B) 5.500% C) 5.650% D) 5.60%
The U.S. government currently imposes a $0.54 per gallon tariff on all ethanol imported into the country. If this tariff were removed, then:
A) the domestic ethanol price falls. B) the domestic quantity of ethanol supplied declines. C) domestic consumer surplus increases. D) domestic producer surplus decreases. E) all of the above
One reason the Medicare system costs so much is
A) the amount of medical services is determined by the equilibrium of supply and demand. B) the supply of medical services does not respond to price changes. C) supply and demand analysis does not apply. D) beneficiaries are entitled to receive services for which the per-unit cost exceeds their own personal out-of-pocket payment.