Juanita is trying to convince the owner of a jewelry store to hire her. She argues that she could help the shop sell an additional three rings per day for a profit of $20 each. If the facts are not in dispute, but the owner does not hire her, then
a. the wage rate must be less than $60 per day.
b. hiring Juanita would involve a negative marginal product.
c. the wage rate must be more than $60 per day.
d. the wage rate must be less than $20 per day.
c
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When the price of tacos rises 4 percent, the quantity demanded decreases 10 percent. What is the price elasticity of demand for tacos?
A) 40.0 B) 25.0 C) 0.4 D) 2.5 E) 10.0
Describe the controversy surrounding the HO model and the widening of the American income gap
What will be an ideal response?
An increase in autonomous spending is sure to reduce the real money supply when
A) the economy is in the liquidity trap. B) the IS curve is vertical. C) the economy is at full employment. D) velocity is constant.
The advantage of a nominal anchor is that it prevents a limitless rise in the
A) national debt. B) nominal interest rate. C) inflation rate. D) unemployment rate.