What can cause a production possibilities curve to move to the right?
a) Thousands of people move out of the country
b) A new invention lowers the cost of production
c) An epidemic kills thousands of young men and women
d) The population is growing increasingly old
Ans: b) A new invention lowers the cost of production
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What is a welfare state?
What will be an ideal response?
For a perfectly competitive firm, the short-run break-even point occurs at the level of output where
A) P > MR = MC. B) MR = P > MC. C) MR < P = MC. D) P = MC = ATC.
A common response to stop a depreciation of a currency is to use contractionary monetary policy, which could lead to a recession
Indicate whether the statement is true or false
Happy Tots Child Care Units of Labor per WeekOutput per WeekMarginal Product per Week144295313441635182 Price of a unit of output: $150 per week.Cost to Happy Tots of hiring one more unit of labor: $400 per week.Table 16.1 Refer to Table 16.1. Suppose the cost of child care workers (units of labor) is the only cost the firm faces. How many units of labor would the firm need to hire to maximize profit?
A. Four B. Five C. Two D. Three