Labor productivity in the United States was 5.4 times higher in the United States than in China in 2010. A key reason that labor productivity is higher in the United States is because the United States
A) has a higher growth rate, based on GDP per capita, than China.
B) has a higher life expectancy and higher birth rate than China.
C) devotes more resources than China to developing new technology and accumulating human capital.
D) devotes more resources than China to developing export markets to boost its real GDP and income.
C
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A windfall profit tax imposed on oil companies would shift the firms'
A) marginal tax rate. B) marginal cost curve. C) average cost curve. D) production function.
A conflict between an owner and a manager may occur when
A) the manager earns more when the firm has higher profits. B) the manager is seeking to maximize leisure time. C) the owner can easily observe the manager slacking off and punish him accordingly. D) the firm is very small and the manager must perform multiple tasks.