Bogo has just discovered that the marginal revenue product generated by the last worker hired was $125 while the marginal factor cost was $110. What should Bogo do?
A. Leave the level of production unchanged.
B. Increase the amount produced.
C. Reduce the amount produced.
D. Collect more information before making a decision.
Answer: B
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Joseph Schumpeter argued that growth was a process of creative destruction. Explain what is meant by the phrase, "creative destruction."
What will be an ideal response?
Refer to the information provided in Figure 7.10 below to answer the question(s) that follow. 
Figure 7.10Refer to Figure 7.10. If this firm's cost of capital is $10 per unit and its cost of labor is $5 per unit, the isocost line represents a total cost of
A. $1,000. B. $2,000. C. $3,000. D. $4,000.
Why would a bank usually want to minimize the amount of excess reserves it has on hand?
What will be an ideal response?
Saving account balances are included in
A. M1. B. M2. C. neither M1 nor M2. D. both M1 and M2.