If the marginal product of labor is less than the nominal wage divided by the price of output, a firm that wishes to maximize profits will
A) hire more labor.
B) lay off workers.
C) maintain its current level of workers.
D) raise the real wage.
B
Economics
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A lump-sum tax, such as a $1000 tax that every family must pay one time, is
A) negatively related to real GDP. B) an autonomous tax. C) a regressive tax. D) a type of income tax.
Economics
If the U.S. interest rate is 4% per year and the U.K. interest rate is 9% per year, then:
a. an investor will see no reason to invest in the United Kingdom. b. an investor will borrow money in the United Kingdom and invest it in the United States. c. an investor can borrow money in the United States and invest it in the United Kingdom and profit. d. an investor will find that the returns are the same in both countries.
Economics