Let MP = marginal product, P = output price, and W = wage, then the equation that represents a situation where a competitive firm should lay off some workers to maximize profits is
A) P × MP > W. B) P × MP < W. C) MP × W = P. D) P × MP = W.
B
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The costs of unemployment are lowest (and perhaps even negative) for ________ unemployment.
A. cyclical B. frictional C. cyclical and structural D. structural
The prisoners' dilemma has an equilibrium that is
A) a Nash equilibrium and both players confess. B) not a Nash equilibrium and both players confess. C) a Nash equilibrium and both players deny. D) not a Nash equilibrium and both players deny.
An economic variable that doesn't move in a consistent pattern with aggregate economic activity is called
A) procyclical. B) countercyclical. C) acyclical. D) a leading variable.
The law of increasing additional cost exists because
A) resources are not perfectly adaptable to both production processes. B) the demand for the product increases. C) the cost of resources of the products increase. D) the cost of resources of the products decrease.