If firms are competitive and profit-maximizing, the demand curve for labor is determined by
a. the opportunity cost of workers' time.
b. the value of the marginal product of capital.
c. the value of the marginal product of labor.
d. the ratio of the marginal product of labor to the marginal product of capital.
Answer: c. the value of the marginal product of labor.
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The primary difference between commodity money and fiat money is that
a. commodity money is a medium of exchange but fiat money is not. b. fiat money is a medium of exchange but commodity money is not. c. commodity money has intrinsic value but fiat money does not. d. fiat money has intrinsic value but commodity money does not.
Refer to the given list. The assets that are not included in either M1 or M2 are:
Answer the question on the basis of the following list of assets: 1. Large-denominated ($100,000 and over) time deposits 2. Noncheckable savings deposits 3. Currency (coins and paper money) in circulation 4. Small-denominated (under $100,000) time deposits 5. Stock certificates 6. Checkable deposits 7. Money market deposit accounts 8. Money market mutual fund balances held by individuals 9. Money market mutual fund balances held by businesses 10. Currency held in bank vaults A. Items 1, 5, 9, and 10. B. Items 2, 5, 8, and 9. C. Items 1, 3, 5, 7, and 9. D. All of the ten items listed.