A perfectly competitive firm will hire workers up to the quantity at which the wage rate equals the
A. marginal revenue product of labor.
B. price of the extra output produced.
C. marginal factor cost of labor.
D. average physical product of labor.
Answer: A
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One of the challenges for development economists working in health care is to figure out a way to:
A. give doctors the right incentives to practice good medicine. B. force families to make better health care choices. C. influence markets in order to keep the costs of healthcare lower. D. alter the educational system in order to mandate that a certain number of students go into healthcare fields.
When the price of a good increases, the quantity demanded of loanable funds ______. When the interest rate increases, the quantity demanded of loanable funds ______. When the interest rate increases, the quantity supplied of loanable funds ______
a. decreases, decreases, decreases b. increases, decreases, decreases c. increases, decreases, increases d. decreases, increases, increases e. increases, increases, increases
Other things the same, the aggregate quantity of goods demanded decreases if
a. real wealth falls. b. the interest rate rises. c. the dollar appreciates. d. All of the above are correct.
Most changes in tax laws tend to be small changes because _____
a. the organizing costs of large coalitions are too high b. logrolling is easier when tax laws effect only a small number of individuals c. special interests are constantly demanding changes that will benefit them d. of the rules of the Senate