1. If the Nominal wage (W) = $100, the price (P) = $4, the Marginal Product of Labor (MPL) = 6, what should the company do?

Select one:

a. The company should stop hiring as the marginal benefit of recruiting is lower than its marginal cost.

b. The company should continue hiring as the marginal benefit of recruiting is lower than its marginal cost.

c. The company should stop hiring as the marginal benefit of recruiting is greater than its marginal cost.

d. The company should continue hiring as the marginal benefit of recruiting is greater than its marginal cost.

2. Which statement is correct?

Select one:

a. The value of new capital goods produced domestically, is taken into account when computing GDP deflator.

b. The value of new capital goods is taken into account when computing GDP deflator regardless of where they are produced.

c. The value of new capital goods produced domestically, is taken into account when computing CPI

d. The value of imported goods is included when computing GDP deflator.

3. Which statement is not true?

Select one:

a. Commodity money as gold coins, has intrinsic value

b. Commodity money as cigarettes in prisoner camps, has intrinsic value

c. Fiat money as paper currency, has intrinsic value

d. Fiat money as coins, has no intrinsic value