When the MPP of labor is zero, ceteris paribus,
A. Additional units of labor must be employed because other factors of production are being wasted.
B. No further increases in output can be achieved by using additional units of labor.
C. Employment can be increased only by offering a higher wage rate.
D. MRP is at a maximum.
Answer: B
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Social Security tax is deducted from your paycheck. In the figure above, this will be shown as
A) taxes flowing from households to firms. B) taxes flowing from households to governments. C) wages flowing from firms to governments. D) wages flowing from firms to households. E) taxes flowing from firms to governments.
The purchasing power of one dollar is equal to _____
a. real GDP divided by nominal GDP b. nominal GDP divided by real GDP c. 1 minus the average price level d. the reciprocal of the average price level e. the implicit GDP deflator divided by the CPI
A movement from an upper point to a lower point on the Phillips curve shows
a. decrease in the inflation and decrease in the unemployment. b. increase in the inflation and decrease in the employment. c. increase in the inflation and increase in the employment. d. decrease in the inflation and increase in the unemployment.
Other things the same, a higher real interest rate raises the quantity of
a. domestic investment. b. net capital outflow. c. loanable funds demanded. d. loanable funds supplied.