A firm will hire a unit of input up to the point where
A) the marginal cost of the input equals the marginal cost of output.
B) the marginal revenue product of the input is equal to the marginal factor cost of the input.
C) the price of the input is equal to the price of output.
D) the marginal physical product of the input is equal to the price of output.
B
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Historically, the most important cause of government budget deficits is
a. cutting taxes. b. printing up too much money. c. financing wars. d. electing liberal politicians. e. business cycles.
For U.S. consumers, the income elasticity of demand for fruit juice is 1.1. If the economy enters a recession next year and consumer income declines by 2.5%, what is the expected change in the quantity of fruit juice demanded next year?
A) -2.75% B) +2.75% C) -27.5% D) +27.5%
The classical model indicates that at the equilibrium interest rate, saving is
A) equal to investment. B) greater than investment. C) unnecessary for investment. D) less than investment.
The federal government has the power to investigate and to try to block
a. only voluntary mergers between firms. b. only hostile takeovers. c. only friendly takeovers. d. any combining of the ownership of previously independent firms that increases concentration.