What do economists call the highest amount a consumer will pay to purchase a good?
The (maximum) willingness to pay.
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Looking at the U.S. balance of payments for the last two decades, how have the current account and the capital account changed?
What will be an ideal response?
One type of financial intermediary now rising in relative importance is
A) pension funds. B) banks. C) savings-and-loan associations (S&Ls). D) life insurance companies.
A contestable market is one where:
A. there is a threat of entry. B. there are no firms that threaten to enter the market. C. firms already in the market cannot leave the market. D. only one firm at a time can serve the market.
Company B has just discovered that the marginal revenue product generated by the last worker hired was $125 while the marginal factor cost was $125. What should Company B do?
A. Leave the level of production unchanged. B. Increase the amount produced. C. Reduce the amount produced. D. Collect more information before making a decision.