Specialization is the result of:
A) hiring experienced workers.
B) paying higher wages to experienced workers.
C) workers developing a certain skill set.
D) increased demand for a firm's commodity.
C
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Technological efficiency occurs when it is not possible for a firm to get more output from the inputs it is currently using
Indicate whether the statement is true or false
Taking actions that reduce risk
A) raise your expected value. B) makes you less risk-averse. C) are impractical in most circumstances. D) change your utility function.
If marginal revenue exceeds marginal cost, profit maximizers should:
a. reduce output until they are equal. b. increase output until they are equal. c. increase output until profits are zero. d. decrease output unless profits are zero. e. maintain current output.
Within the AD/AS model, which one of the following adjustments will cause the economy to return to its long-run capacity when output is temporarily greater than the economy's long-run potential?
a. Lower wage rates and resource prices reduce short-run aggregate supply. b. Lower interest rates increase aggregate demand and, thereby, stimulate output. c. Higher wage rates and resource prices reduce short-run aggregate supply. d. A decrease in prices reduces aggregate demand.