Thinking at the margins means deciding about
a. maximizing goods and services.
b. investing with borrowed money.
c. adding or subtracting one additional unit of some resource.
d. increasing or decreasing technical know-how.
Ans: c. adding or subtracting one additional unit of some resource.
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Which of the following bonds would you prefer to be buying?
A) a $10,000 face-value security with a 10 percent coupon selling for $9,000 B) a $10,000 face-value security with a 7 percent coupon selling for $10,000 C) a $10,000 face-value security with a 9 percent coupon selling for $10,000 D) a $10,000 face-value security with a 10 percent coupon selling for $10,000
Soft budget constraints will lead to
a. inefficiency b. quick responses to changes in supply and demand c. good investment decisions d. high product quality e. managers eager to satisfy consumer demand rather than production quotas
Which of these types of firms can earn a positive economic profit in the long run?
a. monopolies, but not competitive firms or monopolistically competitive firms b. monopolies and monopolistically competitive firms, but not competitive firms c. monopolies, monopolistically competitive firms, and competitive firms d. No firms earn positive economic profit in the long run. Entry will reduce all firms' economic profit to zero in the long run.
The heart of the argument against an increase in the minimum wage is one based on
A. the elasticity argument. B. consumer and producer surplus analysis. C. the macroeconomic argument. D. the work effort argument.