Answer the question on the basis of the following information: Harry owns a barber shop and charges $6 per haircut. By hiring one barber at $10 per hour, the shop can provide 24 haircuts per eight-hour day. By hiring a second barber at the same wage
rate, the shop can now provide a total of 42 haircuts per day. Refer to the given information. The MP of the second barber is:
A. $240.
B. $108.
C. 18 haircuts.
D. 42 haircuts.
Answer: C
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Which of the following questions is studied in microeconomics?
a. Should I go to college or get a job after I graduate? b. What government policies should be adopted to promote employment in the economy? c. How many people are employed in the economy this year? d. Has the overall level of prices in the economy increased or decreased this year? e. What determines the overall salary levels paid to workers in a given year?
Goods with many substitutes tend to have more price elastic demand curves
Indicate whether the statement is true or false
Which of the following statements is not true? a. When consumers purchase more of one good, they are giving up the ability to buy as much of other goods. b. When consumers choose to take more leisure time, they are giving up the ability to consume as much as before. c. Consumers face consumption tradeoffs because they have limited income
d. Consumers face consumption tradeoffs because they have limited preferences for goods.
If velocity and output were nearly constant, then
a. the inflation rate would be much higher than the money supply growth rate. b. the inflation rate would be about the same as the money supply growth rate. c. the inflation rate would be much lower than the money supply growth rate. d. any of the above would be possible.