The marginal factor cost is the
A) additional revenue obtained from a one-unit change in labor input.
B) additional revenue obtained from a one-unit change in output.
C) change in output resulting from the addition of one more worker.
D) cost of using an additional unit of an input.
Answer: D
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Using the UIP equation, what would happen to the spot rate for euros if the interest rate on euro deposits rises ceteris paribus?
a. The spot rate to purchase euros would rise (dollar depreciation). b. The spot rate to purchase euros would fall (dollar appreciation). c. The spot rate to purchase euros would be unchanged. d. The U.S. Federal Reserve would have to raise U.S. short-term interest rates
The quantity of labor demanded depends on the
A) money wage rate not the real wage rate. B) real wage rate not the money wage rate. C) price of output not the money wage rate nor the real wage rate. D) money wage rate AND the real wage rate.