All of the following statements regarding the marginal revenue product (MRP) curve and the demand for labor are true EXCEPT
A. under conditions of perfect competition, MRP equals marginal physical product multiplied by the product's price.
B. an increase in the market demand for a given product decreases the product's price.
C. an individual firm's demand for labor is its MRP curve.
D. the demand for labor is a derived demand.
Answer: B
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An increase in the employment tax will have no effect on output if the labor supply curve
A) is perfectly vertical. B) has a positive slope. C) is perfectly horizontal. D) has a negative slope.
Refer to Figure 26-7. Suppose the economy is in a recession and the Fed pursues an expansionary monetary policy. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) C to B. B) A to B. C) A to E. D) C to D. E) B to C.
Based on information from the U.S. Census, which of the following statements is true?
a. Black women and white women with similar levels of education and experience earn similar pay. b. Blacks and whites have lower levels of educational attainment than Hispanics and Asians. c. Whites and Hispanics have higher levels of educational attainment than Asians and blacks. d. White and black college graduates earn significantly different salaries immediately after college.
In a typical college town, when students go home for the summer, the demand for many items such as pizza and textbooks
a. decreases, which is a shift to the left of the demand curves for these goods. b. decreases, which is a shift to the right of the demand curves for these goods. c. increases, which is a shift to the left of the demand curves for these goods. d. increases, which is a shift to the right of the demand curves for these goods.