A profit maximizing firm will hire additional workers until
A) the additional cost associated with hiring the last worker equals the average wage rate of the workers.
B) the additional cost associated with hiring the last worker equals the additional revenue generated by that worker.
C) the extra revenue generated by the last worker hired equals zero.
D) the extra cost associated with hiring the last worker equals the price of the good produced.
Answer: B
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What will be an ideal response?
In the 1930s, the federal government established the social security system to provide a minimum level of income to elderly and disabled people. This primarily addressed the economic question of:
A) When will each good be produced? B) For whom shall the goods be produced? C) What goods and services should a society produce? D) How should the resources be organized for production?
The decisions on the part of the government to increase spending by $5 billion will have the largest impact on aggregate demand when the spending is financed by the sale of bonds to
A. the member banks. B. the public. C. the Fed. D. foreigners.
Refer to the information provided in Figure 3.8 below to answer the following question(s).
Figure 3.8Refer to Figure 3.8. Assume that there are only two people in the market for baseball caps: Alex and Ryan. Along the ________ for baseball caps, at a price of $10, quantity demanded would be 5.
A. demand curve for Alex B. market demand curve C. demand curve for Ryan D. none of the above