A firm that maximizes profits also
A) is inefficient.
B) cuts corners in production processes so that its products are made too cheaply.
C) uses the least-cost combination of resources.
D) pays input prices lower than other firms do.
C
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If a farmer’s opportunity cost of producing 10,000 bushels of wheat is 5,000 fewer bushels of soybeans, then his or her opportunity cost of producing 5,000 bushels of soybeans must be 10,000 fewer bushels of wheat.
Answer the following statement true (T) or false (F)
The difference between the simple Keynesian model and the IS-LM curve model is that the latter
a. excludes a money market and interest rates. b. includes a commodity market and flexible income. c. excludes a commodity market and interest rates. d. includes a money market and flexible interest rates.Figure 7-3
The components of a well-run incentive compensation scheme include all of the following EXCEPT
a. evaluating the identified performance measures b. avoiding rewards for outcomes that are not included in the performance measures c. rewarding workers who for meet performance measures d. displaying the wealth disparities between the executives and the line workers
Velocity will be ________ if the demand for money with respect to the interest rate is perfectly elastic.
A. negative B. zero C. constant D. variable