If MFC < MRPL, the firm should
A) hire more workers.
B) lower wages.
C) get rid of some capital.
D) reduce the number of workers.
Answer: A
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John's utility of wealth curve is shown in the above figure. He currently has total wealth of $20,000. If there is a 50 percent chance that his $10,000 car will be stolen, then his expected wealth equals
A) $0. B) $10,000. C) $15,000. D) $20,000.
What are the major factors affecting the long-term growth of the economy's output?
What will be an ideal response?
Suppose Bev's Bags makes two kinds of handbags-large and small. Bev rents an industrial space where she keeps the fabric, the industrial sewing machine, her measuring board and cutting shears, extra needles, thread and buttons, and labels. If Bev were to produce no bags, which of the following is true regarding Bev's costs?
A. The variable cost of fabric would drop to zero. B. The fixed cost of thread would stay the same. C. The variable cost of cutting shears would drop to zero. D. All of these are true.
In the circular flow model, firms use the money they earn from selling their goods and services to pay for the
a. goods and services they buy on the product market b. resources they buy on the product market c. goods and services they buy on the resource market d. resources they buy on the resource market e. differences between the revenue they earn selling the goods and services and the costs involved in producing them