Answer the question on the basis of the following information. A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired; 32 when two workers are hired; 37 when three are hired; and 40 when four are
hired. The farmer's product sells for $3 per unit and the wage rate is $13 per worker. Refer to the given information. How many workers should the farmer hire?
A. 1.
B. 2.
C. 3.
D. 4.
Answer: C
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Which of the following statements is true?
A) Proximate causes of prosperity are shaped by fundamental causes of prosperity. B) Proximate causes of prosperity are effective only in the short run. C) Fundamental causes of prosperity are effective only in the short run. D) Fundamental causes of prosperity are shaped by proximate causes of prosperity.
Recall the Application. If country A has a lower overall income tax rate than country B, and labor can freely and easily move between the two countries, real wages in country B will tend to ________ and employment in country B will tend to ________
A) decrease; increase B) increase; decrease C) increase; increase D) decrease; decrease
Which of the following decrease the deadweight loss from a rent ceiling set below the equilibrium rent? i. lowering the ceiling ii. dedicating more resources to enforcement of the ceiling iii. raising the ceiling
A) i only B) ii only C) iii only D) i and ii E) ii and iii
The price elasticity of a vertical demand curve is always
a. infinitely large. b. zero. c. one. d. increasing as price increases.