Bryce graduates from college and gets a job paying $80,000 a year. While in school, he consumed 5 pounds of chicken and 10 pounds of shrimp a month. After he starts working, he consumes 4 pounds of chicken and 12 pounds of shrimp a month. If everything else is held constant, we know that
A. shrimp is an inferior good for Matt.
B. chicken is an inforior good and shrimp is a normal good for Matt.
C. chicken is a normal good for Matt.
D. chicken and shrimp are normal goods for Matt.
Answer: B
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Suppose a plaintiff hires a lawyer to represent her in a court case. Under which of the following contracts is production efficiency assured?
A) The lawyer is paid by the hour. B) The lawyer receives a share of the settlement. C) The lawyer receives a fixed fee. D) The lawyer pays the client a fee for the right to the entire settlement.
Even though fixed costs do not affect the output decision, an increase in fixed costs results in a wider range of prices for which the firm operates at a loss
Indicate whether the statement is true or false
To get a profit-maximizing firm in a perfectly competitive labor market to hire another worker, the firm will need to
A. raise the wage rate paid to that last worker hired and also to all previous workers hired. B. lower the wage rate paid to that last worker hired and also to all previous workers hired. C. lower the wage rate paid to the last worker hired only. D. raise the wage rate paid to the last worker hired only.
Suppose the Northwestern Bank has excess reserves of $12,000 and checkable deposits of $125,000. If the reserve requirement is 20 percent, what are the bank's actual reserves?
A. $25,000 B. $37,000 C. $44,000 D. $47,000