Figure 17.1 depicts a firm's marginal revenue product curve. If the firm maximizes its profit and the hourly wage is $12, how many hours of labor will the firm demand?
A. smaller than 30 hours
B. between 30 hours and 40 hours
C. between 40 hours and 50 hours
D. greater than 50 hours
Answer: C
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The problem of adverse selection in insurance results in a situation in which
A) people choose inappropriate or inadequate coverage because they do not understand the complex information in the policies. B) people choose too much coverage because they do not understand the complex information in the policies. C) people choose too little coverage because they do not understand the complex information in the policies. D) unhealthy people become more likely to buy insurance than healthy people, which drives premiums up, which drives even more healthy people away from the market. E) healthy people become more likely to buy insurance than unhealthy people, which drives premiums up, which drives even more unhealthy people away from the market even though they are the ones who need it most.
Which landmark legislation protected the right of workers to organize and bargain collectively?
a. Landrum-Griffen Act b. Taft-Hartley Act c. Wagner Act d. Walsh-Healy Act