If a firm invests a lot in new employees, it is likely to
A) forward load compensation.
B) pay all the costs of the new training.
C) backload compensation.
D) none of these choices.
C
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If supply in the market for air filters is specified as QS = 24 + 3P, then, when conventionally graphed,
a. the vertical intercept is +24 b. the slope of the supply curve is +3 c. the horizontal intercept is +3 d. none of the above
Suppose a paper mill earns $1,000,000 in profits when it pollutes a river, and it can abate pollution at a cost of $A. The effects of the pollution are confined to a single farmer who earns $400,000 if the water he uses from the river is clean and $300,000 if it's polluted. Which of the following expressions gives the combined profit of both firms with abatement?
A. $(1,300,000 - A) B. $(1,400,000 - A) C. $(700,000 + A) D. $(1,700,000 - A)
When individuals use all available information about an economic variable to make a decision, expectations are
A) rational. B) overestimates of reality. C) underestimates of reality. D) accurate.
Marginal thinking is best demonstrated by: a. choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time. b. deciding to never purchase a coat made with animal skins or furs
c. acquiring all the information relevant to a choice before making that choice. d. measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake.