To minimize costs, a firm should use more capital and less labor if the product derived from the last dollar spent on labor is ________ the product derived from the last dollar spent on capital.
A. equal to
B. greater than
C. less than
D. either greater than or less than
Answer: C
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If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million, its real GDP per capita will
A. fall by 6%. B. remain constant. C. fall by 12%. D. rise by 6%.
Without an accepted medium of exchange
A) people would have to rely on gold or silver in order to exchange goods and services. B) goods and services would be exchanged by barter. C) prices are very difficult to determine. D) there would be no trade.
What's the dominant strategy for each firm?
a. Charge a low price b. Charge a high price c. Firm A charge a low price and firm B charge a high price d. Firm A charge a high price and firm B charge a low price
A payment over and above that necessary to call forth a resource is called
a. profit b. rent c. taxes d. salary e. welfare