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Unformatted text preview: In a market economy the distribution of output will be determined primarily by: A. the quantities and prices of the resources that households supply. B. consumer needs and preferences. C. a social consensus as to what distribution of income is most equitable. D. government regulations that provide a minimum income for all. 13) A firm can hire six workers at a wage rate of $8 per hour but must pay $9 per hour to all of its employees to attract a seventh worker. The marginal wage cost of the seventh worker is: A. $10. B. $15. C. $21. D. $9. 14) The real wage will rise if the nominal wage: A. increases at the same rate as labor productivity. B. increases more rapidly than the general price level. C. falls at the same rate as the general price level. D. falls more rapidly than the general price level. 16) An industry comprised of a small number of firms, each of which considers the potential reactions of its rivals in making price-output decisions is called:...
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This note was uploaded on 12/25/2010 for the course DEPTT. 2339485 taught by Professor J.khowel during the Spring '10 term at twsu.edu.
- Spring '10