If the reserve ratio is 20 percent, then the money multiplier is approximated to be:
A. 20.
B. 10.
C. 5.
D. 2.
Answer: C
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Which of the following characteristics of a production possibilities frontier indicates that trade-offs must be made?
A. The downward slope B. The upward slope C. The constant slope D. The curvature
Exhibit 10-1Use the information in the accompanying chart to answer the following question(s). The firm hires labor competitively and sells its product in a competitive price-taker market. Units of Labor Total Output Product (per day) (dollars) Price 1 15 6 2 30 6 3 40 6 4 48 6 5 54 6 6 59 6 7 62 6 Refer to Exhibit 11-1. If the market wage rate is $25 per day, how many workers should the firm hire if it wants to maximize profits?
A. 4. B. 5. C. 6. D. 7.
Jacob has just tried on the most comfortable pair of pants that he has ever known. The pants are a(n)
A. experience good. B. credence good. C. logo good. D. information good.
Dominic sells pizza slices for $5 on the Santa Monica Pier. He currently sells 500 slices of pizza per day.This is a perfectly competitive business, and Dominic faces a perfectly price elastic demand curve. If he wants to try to increase daily revenues to $3,000, he should
A. lower the price of his pizza to $4 per slice and try to sell 750 slices per day. B. keep the price at $5 per slice and produce 600 slices per day. C. do nothing since he can do nothing to increase revenue. D. raise the price of his pizza to $6 per slice and continue to sell 500 slices per day.