The best number of workers for any employer to hire is that quantity in which:
a. the marginal revenue product equals the marginal factor cost.
b. the marginal revenue product exceeds the marginal factor cost.
c. total costs are minimized.
d. total revenue is maximized.
e. none of these
a
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Which of the following is true about specific performance?
a. It is an amount paid by a breaching party to the suffering party to cover the latter's loss. b. It arises in situations which involve written promises. c. It is usually ordered by the court when the economic value of the transaction is difficult to quantify. d. It is common in case of contracts having a negative influence on the society as a whole.
A firm is a ______ when it can sell as much as it wants at some given price P, but nothing at any higher price.
A. monopoly B. oligopoly C. price taker D. price setter
If aggregate expenditures exceed GDP in a private closed economy:
A. leakages will exceed injections. B. planned investment will exceed saving. C. unplanned investment in inventories will occur. D. saving will exceed planned investment.
In the figure, AD 1 and AS 1 represent the original aggregate supply and demand curves and AD 2 and AS 2 show the new aggregate demand and supply curves. The change in aggregate supply from AS 1 to AS 2 could be caused by:
A. a reduction in the price level.
B. the increase in productivity.
C. an increase in business taxes.
D. the real-balances, interest-rate, and foreign purchases effects.