If the marginal factor cost of hiring an additional worker is $10 while the marginal revenue product is $15, then the firm should
A. hire more workers.
B. fire some workers.
C. stop hiring more workers.
D. none of these: insufficient information to answer the question.
Answer: A
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Suppose we have an economy in which G = 1100, t = 0.26, Y = 3800, and YN = 4000. At Y the cyclical deficit is
A) 60. B) 112. C) -172. D) -52. E) 52.
Expansionary fiscal policy is used to
A) combat inflation. B) combat recessions. C) encourage private saving. D) make businesses more efficient.
A decrease in the price of digital cameras would lead to a(n):
A. Increase in the price and quantity sold of memory cards B. Decrease in the price and quantity sold of memory cards C. Increase in the price and a decrease in quantity sold of memory cards D. Decrease in the price and an increase in quantity sold of memory cards
If only two identical firms operate in a market, consumers prefer
A) a Cournot equilibrium. B) a Stackelberg equilibrium. C) a collusive equilibrium. D) any equilibrium since they all result in the same consumer surplus.