Firms should hire additional units of a resource as long as the:
a. marginal product of the resource exceeds the price of the resource multiplied by the quantity of output produced.
b. marginal product of the resource is less than the price of the resource.
c. price of the output produced is positive.
d. marginal revenue product of the resource exceeds the cost of an additional unit of the resource.
d
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Empiricism is analysis that uses ________ to test theories
A) data B) illustrations C) value judgments D) philosophy
The market for used cars is shown in the above figure. Buyers cannot tell whether any given car is a lemon. Forty percent (40%) of all cars are lemons. Which of the following statements is true?
A) All of the cars will be sold. B) No cars will be sold. C) Only lemons will be sold. D) Ten percent of the used cars sold will be lemons.
Economists typically assume that the owners of firms wish to
A) produce efficiently. B) maximize sales revenues. C) maximize profits. D) All of the above.
An excess supply of money in the economy implies an excess demand for
a. stocks b. mortgages c. consumer nondurables d. consumer durables e. bonds