Question

Question 12 1 pts Which of the following goods/services are nonexcludable and non-rival? O Wigs Staplers Hot dogs O National defense Question 13 1 pts If a worker has a marginal productivity of $20 per hour then what is the most that a profit maximizing firm will pay according to the first rule of labor markets? $15 per hour O $20 per hour O $25 per hour $30 per hour

Answer 1

Answer-12. Correct option is 'D'

National defence are non-excludable and non-rival. National defence is a best example of pure public good. A public good is a good that is both non-excludable and non-rivalrous, in that individuals cannot be excluded from use or could benefit from without paying for it, and where use by one individual does not reduce availability to others or the good can be used simultaneously by more than one person.

Answer-13. Correct option is 'B'

If a worker has a marginal productivity of $ 20 per hour then $ 20 per hour is the most that a profit maximizing firm will pay according to the first rule of labor markets. The marginal revenue productivity theory states that a profit maximizing firm will hire worker up to the point where the marginal revenue product is equal to the wage rate.

Answer-14. Correct option is 'C'

Fair Labor standard Acts of 1938 law created a minimum wage. Fair Labor standard Acts of 1938 is a united states labor law that creates the right to minimum wage, and 'time-and-a-half' overtime pay when people work over forty hours a week. It is also prohibits employment of minor in 'oppressive child labor'.

Answer-15. Correct option is 'A'

Wagner Act of 1935 law created the National Labor Relations Board. Wagner Act of 1935, gurantees workers the right of collective bargaining sets down rules to protect unions and organizers and created the National Labor Relations Board to regulate labor-management relations.