To produce 100 bushels of wheat, Farmer A requires fewer inputs than does Farmer B. We can conclude that Farmer A has an absolute advantage over Farmer B in producing wheat

For the purpose of GDP accounting, consumption expenditures include

A) only durable goods. B) only nondurable goods. C) both nondurable goods and services. D) durable goods, nondurable goods, and services.

If the marginal product of labor is less than the nominal wage divided by the price of output, a firm that wishes to maximize profits will

A) hire more labor. B) lay off workers. C) maintain its current level of workers. D) raise the real wage.