If the marginal physical product (MPP) of the last dollar spent on labor is only half as large as the MPP from the last dollar spent on capital, this firm should
A) increase its use of labor and employ less capital.
B) employ more capital.
C) increase its use of both labor and capital.
D) maintain its current factor utilization pattern.
Answer: B
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Consider the following actions undertaken by a firm:
a. charging a higher price for products of higher quality b. charging different prices to different consumers for the same product when the variation cannot be explained by cost differences c. charging different prices for products of different qualities d. charging a lower price to match a competitor's price Which of the above will be considered price discrimination? A) a, b, c, and d B) a, b, and d only C) b and d only D) b only
If banks are prevented from lending out funds, there will be no money creation in an economy
a. True b. False Indicate whether the statement is true or false
If a nation has a real GDP of $100,000 with 1,000 people, real GDP per capita would be $1,000 per person
a. True b. False Indicate whether the statement is true or false
Which of the following will likely occur when price floors in agriculture are implemented?
A) Quantity supplied will exceed quantity demanded. B) Quantity demanded will exceed quantity supplied. C) Farmland will be underutilized. D) Supply will decrease.