Twenty-eight countries in Europe have eliminated all tariffs with each other. This group of countries is known as the

A firm that wants to maximize profits should hire each input to the point where

A) its marginal revenue product divided by the price of the input equals one. B) its marginal revenue product divided by its marginal physical product equals the wage. C) its marginal revenue product divided by the product price equals one. D) its marginal physical product divided by the price of the input equals the product price.

The distribution of income in a market economy is primarily determined by differences in

a. effort and sacrifice and intelligence with the most important factor being intelligence since human capital is a resource b. the level of needs of the average or median income individual when selling her labor c. resource ownership and the value that resources buyers place on the resources that are sold in the marketplace d. the level of government intervention in the economy as it relates to job openings e. the amount of time that an individual spends working and the intensity of this effort