If at a firm's current level of employment the marginal revenue product of the last worker employed is less than the marginal cost of labor, the firm should
A. provide more on-the-job training.
B. maintain the existing level of employment.
C. decrease employment.
D. increase employment.
C. decrease employment.
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The primary reason commercial banks must keep required reserves on deposit at the Fed is to
A. allow the Fed to control the amount of bank lending. B. ensure that depositors can withdraw their money if they wish to. C. add to the liquidity of the commercial bank. D. protect the deposits in the commercial bank against losses.
Evidence that convergence occurs within economies is drawn in part from the example of ________
A) Hiroshima and Nagasaki Japan B) North and South Korea C) West and East Germany during the Cold War D) Hong Kong and Singapore
A subsidy to wheat farmers reduces the price of a bushel of wheat from $2.50 to $2 per bushel. The equilibrium quantity of wheat sold prior to the subsidy was equal to 200,000 bushels. Predict the new equilibrium quantity of wheat after the imposition of the subsidy given that the demand for wheat is known to be unit elastic
a. 100,000 bushels b. 200,000 bushels c. 250,000 bushels d. 400,000 bushels
If a Pizza Hut restaurant near campus reduces its pizza prices by 15 percent, and as a result, its total revenue from pizza sales increases, this indicates that the price elasticity of demand was
a. elastic. b. of unitary elasticity. c. inelastic. d. equal to 0.15.