If hiring the 7th worker increases total product by 5 units and the price of each unit is $2,
a. the firm should not hire the 7th worker as MB a
c. the firm should hire the 7th worker as MB>MC
d. the firm should not hire the 7th worker as MB
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Forecasts based on the extrapolation of observed trends and relationships are likely to be accurate, if ________
A) changes in expectations are properly considered B) policy actions are anticipated C) economic behavior is guided by rational expectations D) policy changes are understood to be permanent
If an up-scale jewelry maker sells its products to retailers with the explicit condition that the retailers may not resell the products below a specified price, the jewelry maker is likely concerned about ________.
A) output restrictions B) market division C) its reputation D) price fixing
The income flow in the form of resource payments from firms to households, and in the form of revenue from households to firms, is known as the circular flow of money
Indicate whether the statement is true or false
It has been suggested by some economists that rent seeking activity often occurs within families, particularly when an inheritance is involved
Indicate whether the statement is true or false