A competitive employer will hire inputs up to the point where the
A. price of the input equals the marginal product of the input.
B. price of the input equals the price of the output.
C. price of the input equals the marginal revenue product of the input.
D. marginal product of the input reaches a maximum.
Answer: C
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A benefit from an increase in activity is called the
A) marginal benefit. B) economic benefit. C) total benefit. D) opportunity benefit.
What is the difference between the nominal interest rate and the real interest rate?
What will be an ideal response?
You are more likely to hire a plumber to repair a leaky drain pipe
a. as the tax rate on your earned income rises b. if you already own the specialized tools required to complete the plumbing repair work c. following an increase in the opportunity cost of your time d. the more knowledge and experience in plumbing repair work that you possess e. as the transaction cost of entering into a plumbing contract increases due to government regulations
Higher education subsidies in the form of the federal government's student loan program
a. induce more people to attend colleges and universities. b. keep interest rates low on student loans. c. cause lenders to take on more risk. d. All of the above are correct.