If an employer currently finds that the MRP of its labor resources equals $67, and the MFC equals $56, what would you advise the firm to do?
a. Stay at its current output level.
b. Hire additional workers.
c. Raise product prices.
d. Reduce employment.
e. Purchase new technology.
b
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As a person's wage rate increases, the substitution effect motivates an increase in work and the income effect motivates a decrease in work
Indicate whether the statement is true or false
As the interest rate decreases, the quantity of money people will hold:
a. decreases. b. increases. c. stays the same. d. rises and then falls. e. falls and then rises.
One of the key factors in raising people in low-income countries out of the worst kind of poverty is whether they can
a. receive unemployment compensation. b. attend college or vocational school. c. make a connection to a somewhat regular wage-paying job. d. be protected by labor laws and unions.
Unlike other methods, present value analysis indicates that a project should be undertaken if the NPV is greater than zero regardless the income distribution.
A. True B. False C. Uncertain