Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that Joe's marginal cost of staying open per hour is $24. How many hours should Joe stay open?
A. 3 hours
B. 4 hours
C. 5 hours
D. 6 hours
Answer: D
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Since the Fed's faces several uncertainties in regards to effects of its policies, the Fed usually proceeds:
A. only after fiscal policy polices have been enacted B. only after a recession is statistically proven to exist. C. forcefully to ensure a desired effect D. cautiously with only small changes in the interest rate
Which of the following would not shift the supply curve?
A) A rise in the price of the good B) A fall in the expected future price of the good C) A rise in the costs of production of the good D) A negative supply shock that destroys a portion of output
What is game theory?
What will be an ideal response?
Negative externalities are created when
A) an increase in the price of butterfat drives up the price of ice cream. B) a driver leaves his car in a parking space after the meter expires and receives a ticket. C) a driver drives recklessly on a busy highway. D) a driver pulls over to help a stranded motorist fix a flat tire.