You operate a shop that repairs TVs and VCRs. The going wage rate in a competitive market for skilled repair people is $18 per hour. Given the current demand for your services, the marginal revenue product of your repair people is $28 per hour. You should
A. increase the number of repair people working for you.
B. decrease the number of repair people working for you.
C. make no change in the number of people you use.
D. lay off all your employees and do all the work yourself.
A. increase the number of repair people working for you.
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Which of the following is one of the three major macroeconomic goals?
a. Maintain output per person at a relatively stable level. b. Maintain economic growth at a relatively stable level. c. Maintain employment of human resources at relatively low levels. d. Maintain prices at a relatively stable level.
An expansionary monetary policy may be less effective than a restrictive monetary policy because
What will be an ideal response?
Given a downsloping demand curve and an upsloping supply curve for a product, an increase in the price of a substitute good will:
A. decrease equilibrium price and quantity. B. decrease equilibrium price and increase equilibrium quantity. C. increase equilibrium price and decrease equilibrium quantity. D. increase equilibrium price and quantity.
During the Financial Crisis of 2007-2008, Goldman Sachs, Morgan Stanley, and other financial firms with heavy exposure to the mortgage-related problems rushed to become bank holding companies in order to:
A. Follow the order of the U.S. Treasury B. Obtain bail-out money from Congress C. Get massive loans from the Fed D. Acquire funds from the general public