Would the owner of a profit-maximizing fast-food establishment hire another worker for $55 per day if that worker added faster service, increasing sales and revenue by $50 per day? Why or why not?
No, hiring this employee would lead to a reduction in profits by $5, adding more to overall costs than to revenues.
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In the figure above, suppose that $20 is the market equilibrium price. Which area is the consumer surplus?
A) A B) B C) A + B D) B - A E) B รท A
If a nation's current account is -$200 billion and its financial account (excluding its official settlements balance) is $175 billion, how much is its official settlements balance?
A) -$25 billion B) +$25 billion C) -$375 billion D) +$ 375 billion
Net exports is a positive number in the national income accounts when
A. imports exceed exports.
B. exports exceed imports.
C. national income exceeds personal income.
D. capital consumption exceeds net investment.
Average income for adults still varies widely across gender and racial groups in the United States, which tells us:
A. discrimination causes differences in income across race and gender groups. B. income is correlated with race and gender. C. race and gender differences cause differences in income. D. All of these are true.