What do increases in consumer and business confidence lead to?
a. Higher consumption and lower investment demand
b. Lower consumption and investment demand
c. Higher consumption and investment demand
d. Lower consumption and higher investment demand
c. Higher consumption and investment demand
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An apple farmer must decide how many apples to harvest for the world apple market. He knows that there is a one-third probability that the world price will be $1, a one-third probability that it will be $1.50, and a one-third probability that it will be $2. His cost function is C(Q) = 0.01Q2. The expected profit-maximizing quantity is:
A. 150. B. 0. C. 90. D. 75.
Investors evaluate an investment by estimating its average expected rate of return, and this estimation process assigns higher weights to:
A. Higher returns B. More likely outcomes C. Higher risks D. Smaller returns
The marginal physical productivity of labor is:
a. the slope of the total output curve at the relevant point. b. the negative of the slope of the total output curve at the relevant point. c. the slope of the line connecting the origin with the relevant point on the total output curve. d. the negative of the slope of the line connecting the origin with the relevant point on the total output curve.
In order to maximize the net gains from an activity, a Maeva should choose the quantity at which the marginal:
a. benefit exceeds the marginal cost by the greatest amount. b. benefit is zero. c. benefit is equal to the marginal cost. d. cost is lowest