The quantity equation becomes the basis for a theory when we assume that velocity of money is constant
Indicate whether the statement is true or false
TRUE
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Marking to market refers to
A) the determination of the prices of options contracts by the interaction of demand and supply. B) the determination of the prices of futures contracts by the interaction of demand and supply. C) the settlement of gains and losses on futures contracts each day. D) the settlement of gains and losses on forward contracts each day.
A firm replaces a machine by hiring 3 hourly production workers instead. a. Both its fixed and variable costs will fall
b. Both its fixed and variable costs will rise. c. Its fixed costs will rise and its variable costs will fall. d. Its fixed costs will fall and its variable costs will rise.
A person who quits working because of a variety of excuses such as "unbearable office politics" or "difficulty to work in that environment" is described as being part of
a. discouraged workers b. counterfeit unemployment c. the underemployed d. displaced unemployment e. frictional unemployment
The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000.
When the firm uses 40 units of labor, how much output does it produce?
A. 1,600 units B. 2,800 units C. 4,000 units D. 400 units E. none of the above