Who can determine the true cost of water?
A) Nobody
B) Anybody who puts their mind to it
C) Only the most competent hydrologist
D) A good accountant
A
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According to the marginal productivity theory of income
A) the income received by an individual who supplies labor services equals the incremental benefit generated to the firm by that individual's labor. B) the average income received by an individual who supplies resources is influenced by the resources owner's marginal productivity. C) the greater the quantity of resources owned by an individual, the greater his incentive to increase productivity and his income. D) the income received by an individual who supplies labor services equals the profit generated to the firm by that individual's labor.
An increase in credit market frictions
A) decreases labor supply. B) decreases labor demand. C) decreases consumption demand. D) decreases investment demand.