Paper Pushers Inc. hires workers in a competitive labor market. Apart from labor, the company has no other variable inputs. The company’s hourly output varies with the number of workers hired, as shown in the table. Workers Pages/hour 0 0 1 40 2 75 3 105 4 125 5 140 6 150 7 155 If each page sells for $2 and the market wage is $15 per hour, then this firm will hire ______ workers per hour.
a. 4
b. 5
c. 6
d. 7
Answer: c. 6
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When the good on the horizontal axis is a composite good, the slope of the budget constraint is minus the price of the good on the vertical axis.
Answer the following statement true (T) or false (F)
Most Americans believe that families really could get by on the government's definition of minimum needs if they tried hard
Indicate whether the statement is true or false
Assume the central bank decides to raise the discount rate. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real credit market with supply of real credit shifting to the right. b. Start the analysis in the real goods market with aggregate demand shifting to the left. c. Start the analysis in the real credit market with demand for real credit shifting to the left. d. Start the analysis in the real credit market with demand for real credit shifting to the right. e. Start the analysis in the real credit market with supply of real credit shifting to the left.
The Board of Governors of the Fed:
A. consists of seven state governors who represent the views of individual states in monetary policy. B. consists of seven members appointed by the President of the United States, who together act as the key decision-making entity for monetary policy. C. consists of 13 large commercial bank CEOs who represent the interests of the private banking sector in monetary policy. D. is the primary monetary group responsible for buying and selling bonds designed to change reserves in the banking system. The Board of Governors is the key decision maker for monetary policy.