If a firm hires 200 workers and produces 5,000 computers. If the firm hires one more worker, it produces 5,050 computers. If computers sell at a constant price of $100 and labor is hired at a constant wage rate of $4,000 per worker
A) the firm should hire and retain the additional worker.
B) the marginal factor cost of labor is $4,000.
C) the marginal revenue product of the added worker is $5,000.
D) all of the above.
Answer: D
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In the above figure, if initial equilibrium is at point A and there is a fully anticipated increase in aggregate demand from AD1 to AD2 due to an anticipated increase in the money supply, then
A. the economy will move directly from point A to point B, and will remain at point B in the long run. B. the price level will shift to P2 in the short run. C. the economy will move directly from point A to point C without passing through point B. D. the price level will shift to P2 in the long run.
In the expectations-augmented Phillips curve, ? = ?e - 3(u - 0.05). When ? = 0.06 and ?e = 0.03, the unemployment rate is
A) 0.04. B) 0.05. C) 0.06. D) 0.07.
Economists make use of assumptions, some of which are unrealistic, for the purpose of
a. teaching economics to people who have never before studied economics. b. advancing their political agendas. c. developing models when the scientific method cannot be used. d. focusing their thinking.
For economic growth to take place, we must consume more and save less.
a. true b. false