If the price of labor increases, in order to minimize the costs of producing a given level of output, the firm manager should use:
A. less of labor and less of capital.
B. less of labor and more of capital.
C. more of labor and more of capital.
D. more of labor and less of capital.
Answer: B
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Which of the following statements is true?
A) Optimization in levels is based on behavioral analysis. B) Optimization in differences is based on marginal analysis. C) Optimization in differences is often faster than optimization in levels, as it considers all aspects of the feasible alternatives. D) Optimization in levels is often slower to implement than optimization in differences, as it considers only the aspects in which alternatives differ.
The above table shows the short-run total product schedule for the campus book store. With which employee do diminishing marginal returns set in?
A) the 9th employee B) the 6th employee C) the 5th employee D) the 2nd employee
According to the Ricardian equivalence proposition, current deficits
A) will not affect consumption or national saving. B) will affect consumption but not national saving. C) will affect national saving but not consumption. D) will affect both consumption and national saving.
The amount of a commodity that buyers in the market would like to purchase at a particular price is
a. equilibrium b. quantity supplied c. quantity produced d. infinite e. quantity demanded