All of the following statements regarding the marginal revenue product (MRP) curve and the demand for labor are true EXCEPT
A) an individual firm's demand for labor is its MRP curve.
B) under conditions of perfect competition, MRP equals marginal physical product multiplied by the product's price.
C) an increase in the market demand for a given product decreases the product's price.
D) the demand for labor is a derived demand.
Answer: C
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Economic analysis and policy are made more difficult by
a. having so much data to work with. b. inadequate and imperfect information. c. an incomplete consensus on the basic goals of social policy. d. the lack of public interest and opinion on economic questions. e. the major economic problems society faces.
If a local government eliminates the tax exemption on municipal bonds, we'd expect to see:
A. municipal bonds will become more attractive to investors. B. an increase in the yield on taxable bonds. C. a decrease in the gap in yields on taxable and tax-exempt bonds. D. a decrease in the yield on municipal bonds.