The table below shows a competitive firm's short-run production function. Labor is the firm's only variable input, and market price for the firm's product is $2 per unit. 
If the wage rate is $200, the firm should
A. produce because average revenue product is $245, which is greater than the wage rate.
B. shut down because average revenue product is $228, which is greater than the wage rate.
C. produce because average revenue product is $200, which is less than marginal revenue product.
D. shut down because average revenue product is $200, which is less than marginal revenue product.
Answer: A
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Given the average tax rate t, a general expression for the budget deficit is
A) tG - Y. B) Y - tG. C) G - tY. D) Y - (G/t).
You have one free movie to give away. Susie Wong would receive 75 units of utility from the pass while Ralph Zilda would get 90 units of utility from the pass. Movie tickets sell for $8 at the theater. You want to create the most satisfaction possible by giving away the pass. Who should the movie be given to?
a. Susie because her current utility is lower. b. Ralph because he will receive the most total utility. c. Ralph because his marginal utility per dollar is higher. d. Not Susie because her marginal utility is lower. e. There is not enough information to decide.
Employers may choose to pay their workers a wage that exceeds the equilibrium wage according to
a. efficiency-wage theories. b. equilibrium wage theories. c. screening theories. d. signaling theories.
A nation has a comparative advantage over a trading partner in the production of good A if it
A. produces good A at a lower opportunity cost per unit than its trading partner. B. can produce good A with the same resources as its trading partner but in less time. C. can match its trading partner's output of good A and have resources left over. D. has an absolute advantage over its trading partner.