If MFC < MRPL, the firm should

A. lower wages.
B. get rid of some capital.
C. reduce the number of workers.
D. hire more workers.


Answer: D

Economics

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Using the above table, moving from alternative C to alternative B, what is the opportunity cost of one loaf of bread?

A) 1 pizza pie B) 30 pizza pies C) 2 pizza pies D) 0.5 pizza pie

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______ is the percentage change in hours worked divided by the percentage change in wages—will determine the shape of the labor supply curve.

a. Elasticity of savings b. Cross-price elasticity of demand c. Income elasticity of demand d. Wage elasticity of labor supply

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When a bank loans out $1,000, the money supply

a. does not change. b. decreases. c. increases. d. may do any of the above.

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