Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1.
B. P2 and Y1.
C. P2 and Y3.
D. P1 and Y2.
Answer: B
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Why would a firm knowingly hire lazy employees?
A) Lazy employees have positive marginal revenue product. B) Lazy employees have successfully sued firms in the past. C) The Americans with Disabilities Act mandates that laziness be considered a disability. D) Lazy employees make hard-working employees look good.
In the market for used cars
A) the market is efficient because the cars are bought by the people who value them the most. B) the market is inefficient because lemons drive out the high quality cars. C) no cars are sold, because people don't like buying lemons. D) Not enough information to determine.
Assume Ajax Company employs 100 workers and total revenue is $400,000 per week. When Ajax Company employs 101 workers, total revenue is $405,000 . The marginal revenue product of the 101st worker is:
a. $40,000. b. $5,000. c. $405,000. d. none of these.
Ceteris paribus, for the owner of a sawmill, lumber and the sawdust that go into particle board are
A. Unrelated in the sawmill operator's decision. B. Substitutes in production. C. Complements in production; by-products. D. None of the choices are correct.