Consumers must understand the law of diminishing marginal utility in order to maximize their satisfaction
a. True
b. False
B
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Using the data in the above table, what is the marginal product of the third employee?
A) 2 pizzas per hour B) 3 pizzas per hour C) 4 pizzas per hour D) 12 pizzas per hour
Explain the concept of a backward-bending labor supply curve.
What will be an ideal response?
A depositor places $10,000 in cash in a commercial bank, where the required reserve ratio is 10 percent. The bank sends the $10,000 to its Federal Reserve Bank. As a result, the actual reserves, required reserves, and excess reserves of the bank have been increased by:
A. $10,000, $9000, and $1000 respectively B. $10,000, $500, and $4500 respectively C. $10,000, $1000, and $9000 respectively D. $1000, $10,000, and $9000 respectively
John and Jack are both trying to sell a used car to Jim. John's car is a lemon, a car that has a serious but nonobvious problem. Jack's car is a cherry, a car that has no problems. Jim cannot tell the difference between the cars. Economists say this information problem might be solved with signaling. Who has an incentive to find a way to signal quality?
A. John but not Jack B. Jim C. Both Jack and John D. Jack but not John