A perfectly competitive firm will hire labor as long as the marginal revenue product of labor is
A. zero.
B. less than the going wage.
C. greater than the going wage.
D. equal to the going wage.
Answer: C
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Suppose a U.S. citizen invests $1,000 to purchase a one-year Japanese bond that has an interest yield of 10 percent. If the dollar appreciates 20 percent against the Japanese yen by the maturity date, the dollar value of the proceeds is _____
a. $900 b. $1,100 c. $1,300 d. $1,500 e. $1,200
Which of the following is a similarity between an oligopoly and monopolistic competition? a. Both markets are characterized by mutually interdependent decision making. b. Both markets produce homogeneous products
c. Both markets are controlled by many dominant firms. d. Both markets have firms that compete for market share.
Privatization is a process of
a. breaking up large government companies into small government companies b. selling government companies to private individuals c. consolidating small government companies into larger ones d. government buying private companies e. none of the above
By hedging a portfolio, a bank manager
A) reduces interest-rate risk. B) increases reinvestment risk. C) increases exchange-rate risk. D) increases the probability of gains.