In the Specific Factors Model,at the General Equilibrium,if the Wage

question 5

Multiple Choice

In the specific factors model,at the general equilibrium,if the wage per worker is $10 an hour and the price of food is $2,000 per ton,the marginal product of labor of food production is ________.

• A) 20,000
• B) 0.005
• C) 1
• D) 200

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Definitions:

Illusory Correlations

The perception of a relationship between two variables when none actually exists.

Memory Biases

The tendency for memory to be distorted by previous experiences, desires, or the current emotional state.

Representativeness Heuristic

A belief that outcomes will always reflect characteristics of the process that generated them (e.g., an expectation that the outcome of a series of coin flips will always look random).

Coin Flips

A random process used to generate two equally likely outcomes, typically representing "heads" or "tails."