If a firm wants to maximize profits, it should hire workers up to the point at which
A) total factor cost = total revenue.
B) marginal factor cost = marginal revenue product.
C) marginal utility = marginal cost.
D) total social benefit = total social costs.
Answer: B
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Refer to Figure 13-1. Ceteris paribus, an increase in the value of the domestic currency relative to foreign currencies would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Answer the following statements true (T) or false (F)
1. A free good may eventually become an economic good. 2. Payment for the use of capital is made in the form of rent. 3. The study of economics would be less complicated if differences in subjective judgments did not exist. 4. Equilibrium is a position of stability or rest.
Which writer held the view that by showering so much money on the poor, the government robbed them of their incentive to work?
A. Barbara Ehrenreich B. Frances Fox Piven C. Charley Murray D. William Julius Wilson
The price system has
A) prices fixed by the government. B) prices fixed by the seller. C) voluntary exchange. D) prices fixed by the producer.