When MFC = MRP, a firm in a competitive market will
A. stop hiring more workers.
B. hire more workers.
C. layoff workers.
D. earn additional profits.
Answer: A
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Suppose the Fed announced that it has chosen to accept a temporary period of above-target inflation. Assuming that the announcement is seen as credible, this will tend to increase inflationary expectations, which will result in
A) the AD curve shifting to the right. B) the AD curve shifting to the left. C) the AS curve shifting to the right. D) the AS curve shifting to the left.
A major component of the “cradle-to-grave” management system is
a. identification of hazardous waste b. a permit system for treatment, storage, and disposal facilities (TSDFs) c. a national manifest system for tracking through the waste stream d. all of the above e. (a) and (c) only
What do Keynesians mean when they say that "you can't push on a string"?
A) An increase in the supply of goods does not really create its own demand. B) If the government reduces taxes in an attempt to increase household consumption, it will not always work. C) An increase in the money supply will not always stimulate the economy. D) If the government wants to get something done, the best way is not to force the issue, but to offer incentives. E) If the government puts too much expansionary pressure on the economy, it will probably "overheat."
When you go to a baseball game your ticket specifies your seat and section of the stadium where the seat is located. Assuming the seats all cost nearly the same to install and maintain, what pricing strategy would you expect the team officials to adopt if a full stadium with a maximum of satisfied customers and at least normal profit is the goal?
A. Price all seats at cost, which includes normal profit. B. Price above cost for seats with the best view and below cost for less desirable seats so the gain from those willing to pay more for the best seats offsets the loss on the cheap seats. C. Price all seats above cost so if there are empty seats, at least total costs can hopefully be covered. D. Price above cost for the seats with the best view and price at cost for the rest even if this means the stadium is not full. At least total cost with normal profit will be achieved.