A firm's demand schedule for capital is
A. the marginal revenue product and marginal physical product schedule for capital.
B. neither the marginal revenue product schedule nor the marginal physical product schedule for capital.
C. the marginal revenue product schedule for capital.
D. the marginal physical product schedule for capital.
C. the marginal revenue product schedule for capital.
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How is the wage to be paid to a worker determined by a profit-maximizing firm? If a marginal worker creates 8 units of a product in a month that is sold for $5 per unit, how much should be the maximum wage that should be paid to him?
What will be an ideal response?
Based on the CBO's projections of governments revenue and expenditure, if entitlement programs remain large and unfunded, the current fiscal policy of the federal government
A) will lead to a larger, but sustainable debt-to-GDP ratio. B) will have to become more expansionary to remain sustainable. C) is not sustainable. D) will still keep the debt-to-GDP ratio relatively stable.
If Dell and Toshiba computers are substitutes and the price of dell computers increases we would expect to see
a. An increase in demand for Toshiba computers b. An decrease in demand for Toshiba computers c. An increase in the quantity of Toshiba computers demanded d. An decrease in the quantity of Toshiba computers demanded
If a Starbucks tall latte costs $3.20 in the United States and 3 euros in the Euro area, then purchasing-power parity implies the nominal exchange rate is how many euros per dollar?
a. .938 If the exchange rate is less than this, it costs more dollars to buy a tall latte in the U.S. than in the Euro area. b. .938 If the exchange rate is less than this, it costs fewer dollars to buy a tall latte in the U.S. then in the Euro area. c. 1.067 If the exchange rate is less than this, it costs more dollars to buy a tall latte in the U.S. than in the Euro area. d. 1.067 If the exchange rate is less than this, it costs fewer dollars to buy a tall latte in the U.S. than in the Euro area.