If the marginal revenue product of the last worker hired exceeds the marginal factor cost of the worker, the firm would be better served if it
A) hires additional workers.
B) maintains its current level of workers already hired.
C) lays off the last worker hired.
D) None of the above is a good option for a profit-seeking firm.
Answer: A
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The data in the above table demonstrates that gains from trade can be captured if
A) the United States produced both goods. B) the United States produced steel in exchange for concrete produced in France. C) the United States produced concrete in exchange for steel produced in France. D) each country became self-sufficient, produced both goods for itself, and did not engage in trade.
At present, approximately how many years would it take for the world's population to double?
(a) 35. (b) 58. (c) 96. (d) 211.
The age-earning cycle shows an individual typically earning
A) a constant income (adjusted for inflation) over the entire working life of the worker. B) an income that cycles upward and downward as an individual ages. C) an income that increases with age, peaks, and then falls as retirement approaches. D) an income that declines until age 30-35 and then increases rapidly.
If the government uses tax money to pay for long-term investments such as roads or other infrastructure, what happens to the economy?
(A) Taxes decrease (B) Investment decreases (C) Investment increases (D) Taxes increase