If the marginal revenue product of the last worker hired exceeds the marginal factor cost of the worker, the firm would be better served if it
A) hires additional workers.
B) maintains its current level of workers already hired.
C) lays off the last worker hired.
D) None of the above is a good option for a profit-seeking firm.
A
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If velocity is equal to 4, this means that
A) the rate of growth of the money supply is 4. B) an increase in the money supply will lead to an increase in aggregate supply of 4. C) each dollar of the money supply is spent on the average 4 times per year. D) for every 4 dollars of the money supply, nominal GDP will increase by 4.
Social surplus is maximized in a(n) ________
A) perfectly competitive market B) monopolistically competitive market C) monopoly market D) oligopoly market
Exhibit 6A-6 Consumer equilibrium
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Given the budget lines and indifference curves shown in Exhibit 6A-6, if the budget line shifts, then the equilibrium points X and Y:
A. result from a decrease in the price of good X. B. result from a decrease in the consumer's budget. C. are two points along a downward sloping demand curve for good X. D. result from a decrease in the price of good Y.
The principal-agent problem exists when
A. owners have an interest in making a profit. B. owners of an asset and the managers of that asset are the same. C. managers are dedicated to making owners a profit. D. owners of an asset and the managers of that asset are the not the same.