If the value of the marginal product of a worker is $20 and the market price of the good he produces is $5, his marginal product is:
A) 4 units.
B) 10 units.
C) 25 units.
D) 100 units.
A
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Use the following graph for a perfectly competitive firm to answer the next question.
If the firm is maximizing profits in the short run, the amount of economic profit per unit is
A. DH. B. EH. C. DE. D. DB.
Which of the following was NOT part of Korean industrial policies?
A) An aggressive promotion of exports along with high levels of protection B) Directed credit and tax breaks given to targeted industries C) Subsidies given to some targeted firms D) Bailing out bankrupt firms without any attempt to dispose distressed firms E) Allowing exporting firms to borrow funds at below-market interest rates
Country A has a capital—labor ratio that is initially twice as big as that of country B, but neither is yet in a steady state. Both countries have the same production function, f(k) = 6k1/2
Country A has a 10% saving rate, 10% population growth rate, and 5% depreciation rate, while country B has a 20% saving rate, 10% population growth rate, and 20% depreciation rate. (a) Calculate the steady-state capital—labor ratio for each country. Does the initial capital—labor ratio affect your results? (b) Calculate output per worker and consumption per worker for each country. Which country has the highest output per worker? The highest consumption per worker?
Moral hazard:
A. is about the unobserved characteristics of people. B. is about the unobserved actions of people. C. occurs before the parties have entered into an agreement. D. None of these statements is true.