The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities. Number of EmployeesTotal DonationsAverage DonationsTotal Labor CostsAverage Labor Costs1$30,000 $8,0002$42,426 $17,000 3 $17,321$27,000 4$60,000 $9,5005 $13,416$50,000 The President of State U decides to hire fundraising employees as long as their average benefit exceeds their average cost. This results in ________ employees being hired and a net benefit (total donations minus total labor costs) of ________.
A. 4; $60,000
B. 5; $67,080
C. 4; $22,000
D. 5; $17,080
Answer: D
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A) domestically; anchor B) domestically, domestic C) internationally; anchor D) internationally; domestic
The deficit that exists when the economy operates at full employment is called the __________ deficit
A) net B) gross C) cyclical D) structural
Hard currencies are usually ________.
A) not fully convertible B) undesirable assets C) highly liquid D) unstable
Suppose there are ten people playing cards in a room. One of them wants to smoke a cigar, nine of them dislike the smell of cigar smoke. The smoker values the privilege of smoking at $5, and each of the other nine people of the room would be willing to pay fifty cents for clean air in the room. The rules governing use of the room state that smoking is not allowed unless everyone agrees to allow smoking. If the rules governing the room instead stated that smoking is allowed unless everyone in the room agrees to prohibit it, then:
A. the non-smoking occupants will pay the cigar smoker to not smoke. B. the cigar smoker will smoke and not have to pay the other occupants for the external cost. C. the parties may or may not be able to reach a negotiated agreement depending on the bargaining strength of each. D. the cigar smoker will smoke, and will pay each other occupant 50 cents.