Which of the following statements is true of economic reasoning?
A) Economic reasoning hampers optimal decision making.
B) Economic reasoning can only be used with normative choices.
C) Economic reasoning implies that leisure time is free and costless.
D) Economic reasoning helps people make the best use of scarce resources.
D
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How is the wage to be paid to a worker determined by a profit-maximizing firm? If a marginal worker creates 8 units of a product in a month that is sold for $5 per unit, how much should be the maximum wage that should be paid to him?
What will be an ideal response?
On a two-dimensional graph, ________ allows for the effects of additional variables
A) adding an additional curve B) eliminating a curve C) moving along a curve D) shifting curves
To complement actions by the Fed to reduce inflation, Congress and the President can cut spending and/or raise taxes
Indicate whether the statement is true or false
Suppose a manufacturer of software develops a new computer program that sells for $50
The $50 cost includes $0.25 for the CD it is stored on, $5 for the labor of the company software programmers, and $1.75 for packaging materials and transportation costs. Value added by the software company is A) $49.75. B) $48.25. C) $48. D) $44.75. E) $43.