Refer to the above table. If the price of the product is $1.50, and the marginal factor cost of an additional unit of an input is $105, how many units of labor should be hired?
A) 11
B) 12
C) 13
D) 14
C
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The costs of determining who to bargain with are called
A) search costs. B) collectivization costs. C) negotiation costs. D) monitoring and enforcement costs.
Suppose the demand curve for a product is represented by a typical downward-sloping curve. Now suppose the demand for this product decreases. Which of the following statements accurately predicts the resulting decrease in price?
A) The increase in price is not affected by the elasticity of the supply curve. B) The more elastic the supply curve, the smaller the price decrease. C) The decrease in price will always be proportional to the magnitude of the demand shift. D) The more elastic the supply curve, the greater the price increase.
Which of the following is not correct?
a. When developing economic theories, graphs offer a way to visually express ideas that might be less clear if described with equations or words. b. Graphs are one way of expressing the relationships among variables. c. When studying the relationship between two economic variables, graphs allow economists to draw indisputable conclusions about causes and effects. d. When analyzing economic data, graphs provide a powerful way of finding and interpreting patterns.
Which of the following is not true about government spending on national defense?
a. It is the third-largest spending category for the U.S. federal government. b. It includes salaries of military personnel. c. It fluctuates over time as the political climate changes. d. It is not financed with tax revenue.