Which of the following statements is TRUE about the market demand curve for labor?
A) The market demand curve is the sum of the individual firm's demand curve.
B) The market demand curve will be perfectly inelastic since firms need labor.
C) The market demand curve shows the quantities of labor demanded by all firms in the industry at various marginal products.
D) The market demand curve depends upon labor productivity, the wage rate and the price of the final product.
Answer: D
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Total utility is maximized when the ________ for all goods
A) marginal utility per dollar spent is equal B) marginal utilities are zero C) marginal utilities are maximized D) marginal utilities are negative
A U.S.-owned car factory in Mexico produces $5 million of cars. $2.5 million of these cars are sold in Mexico and the other $2.5 million are sold in the U.S. In both cases $1 million of the value of the cars was due to U.S-owned equipment located in Mexico and U.S. managers working in Mexico. How much did this production contribute to U.S. GDP?
a. $0 b. $1 million c. $2 million d. None of the above are correct