A firm faces the labor productivity and cost schedule in the table above. How many workers will this profit-maximizing firm employ?
A. 6
B. 7
C. 8
D. 9
C. 8
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Michigan has an abundant supply of fresh water. However, an economist would consider it a scarce resource because
a. water is necessary for humans' physical survival b. pollution will eventually destroy all life in the Great Lakes c. water is limited relative to people's unlimited wants d. water commands a very high price e. nature can destroy water as well as create it
If private investment increased by $50 billion while GDP remained the same, which of the following could have occurred, all else being the same?
a. Consumption spending decreased by $50 billion b. Exports increased by $50 billion c. Imports decreased by $50 billion d. Net exports increased by $50 billion e. Government spending increased by $50 billion
The national defense argument for trade protectionism holds that
A) what is good for business is good for the country. B) what is good for consumers is good for the country. C) consumers' surplus rises by more than producers' surplus falls. D) producers' surplus rises by more than consumers' surplus falls. E) none of the above
Answer the following statements true (T) or false (F)
1) A negative GDP gap can be caused by either a decrease in aggregate demand or a decrease in aggregate supply. 2) The equilibrium price level and equilibrium level of real GDP occur at the intersection of the aggregate demand curve and the aggregate supply curve. 3) The greater the upward slope of the AS curve, the larger is the realized multiplier effect of a change in investment spending. 4) The price level in the United States is more flexible downward than upward.