19.Supose that a firm wants to maximize the profit in a context of short run. If the MP of labour is equal to 20 and the price P of the output is equal to 3$, therefore the wage rate w must be equal to

A)55$

B)60$

C)15$

D)25$

20.Jills works as a computer specialist for a local manufacturing firm. If Jill receives a raise in her hourly wage and decides she would like to decrease her hours of work, we know that:

A) her income effect is greater than her substitution effect

B) Her income and substitution effect are equal

C) Her substitution effect is greater than her income effect

D) Her income and substitution effect reinforce each other

21.Choose the correct description for the following money market instrument. A repurchase agreement is:

A) a debt instrument sold by bank to depositor that pays annual interest of a given amount and at maturity pays back the original purchase price.

B) a short-term debt instrument issued by the Canadian government to cover immediate spending obligations

C) a short term money market instruments issues primarily by banks and funded from corporations and other banks through loans in which Treasury bills serve as collateral, with an explicit agreement to pay off the debt

D) and overnight loan between banks