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.
B
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The reduction of the inflation rate is called
A) deflation. B) disinflation. C) unflation. D) reflation.
The number of cases of Coca-Cola bought increased by 50 percent when the price of pretzels declined by 10 percent. Assuming other factors are held constant, Coca-Cola and pretzels are classified as:
a. complements. b. unrelated goods. c. substitutes. d. social goods.
If the government announces a new increase in spending with no change in taxes, which of the following would most likely occur?
a. No change in the aggregate demand curve as well as no movement along it b. A leftward shift of the aggregate demand curve c. An upward movement along the aggregate demand curve d. A rightward shift of the aggregate demand curve e. A downward movement along the aggregate demand curve
Explicit costs incurred by firms include the firm's opportunity costs.
a. true b. false