Zippy Car Wash on Main Street needs at least one worker to operate. That one worker can clean 10 cars in an hour. If a second worker is present, 18 cars can be washed per hour. With three workers, 25 cars can be washed per hour. With a full staff of four workers, 30 cars can be washed per hour. What is the marginal product for number of workers at Zippy Car Wash?
a. the total number of cars that can be washed with four workers
b. the cost of wages and benefits for Zippy’s workers
c. the optimal staffing level for the car wash
d. the per worker change in the number of cars that can be washed per hour
d. the per worker change in the number of cars that can be washed per hour
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Suppose you are analyzing data for an economy in which Ricardian neutrality holds true. What happens if the budget deficit increases by 50?
a. Investments will increase by 50. b. Investments will decrease by 50. c. Private savings will decrease by 50. d. Private savings will increase by 50.
The quantity equation states that the
A) money supply times the velocity of money equals the price level times real output. B) money supply times the price level equals real output divided by the velocity of money. C) money supply divided by the velocity of money equals the price level divided by real output. D) money supply times the price level equals real output times the velocity of money.
A firm is concerned about the possibility of patent infringement and has hired an attorney to review patents. If the attorney is reviewing 100 patents and the marginal cost of reviewing the 100th patent is $30 and the expected marginal benefit of reviewing the 100th patent is $25, which of the following is true?
A) The firm's total cost of infringement will increase if the number of patents reviewed decreases. B) The firm's total cost of infringement will decrease if the number of patents reviewed decreases. C) The firm is minimizing the total cost of infringement. D) The firm's total cost of infringement will decrease if the number of patents reviewed increases.
In the short run, and especially when unemployment is high, crowding in is the stronger force. The short-run effects of government’s financial rescue program and fiscal stimulus package helped the economy increase aggregate demand curing the Great Recession.
Answer the following statement true (T) or false (F)