If the wage exceeds the value of the marginal product of labor, then hiring another worker
a. decreases the firm's total revenue.
b. increases the firm's profit.
c. decreases the firm's total cost.
d. decreases the firm's profit.
d
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Which of the following is the most likely side effect of an increase in the relative size of the underground economy with the passage of time?
a. The growth rate of real GDP will tend to understate the growth rate of total output. b. The growth rate of real GDP will tend to overstate the growth rate of total output. c. The GDP deflator will tend to overstate any increase in inflation. d. The GDP deflator will tend to understate any increase in inflation.
The main purpose of the Fed is to:
a. serve as the bankers' bank for member banks. b. regulate interest rates. c. print Federal Reserve Notes. d. regulate financial institutions. e. maintain the proper functioning of our money system.