Suppose the local government will determine if a contracting firm will be given a job based on rolling a fair die. If a four or above appears after the die has been rolled, the contracting firm will be given the job. The managers of the contracting firm will use ________ probabilities to estimate the likelihood that their firm will be given the job.
A) unknown
B) subjective
C) objective
D) relative
C) objective
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Which of the following statements regarding the marginal product curve is FALSE?
A) Increasing marginal returns occur only when the total product increases as the number of workers increases. B) Increasing marginal returns is due to greater efficiency from specialization in the production process. C) The law of diminishing returns applies in the short run. D) Along the marginal product curve, increasing marginal returns occur first and then diminishing marginal returns.
When a firm is a price searcher, its marginal revenue is
a. equal to price because the firm's demand curve is perfectly elastic. b. equal to price if, and only if, the firm is maximizing profits. c. less than price when the firm is maximizing profits. d. equal to average total cost at the long-run equilibrium output rate.
If wages are "sticky", a decline in the price level will
A) raise the real wage and lower the quantity demanded of labor. B) lower the real wage and lower the quantity supplied of labor. C) raise the real wage and lower the quantity supplied of labor. D) a and b E) none of the above
There is evidence that the rate at which money changed hands rose during the German hyperinflation. This means that
a. velocity rose. If monetary neutrality holds the rise in velocity increased the ratio M/P. b. velocity rose. If monetary neutrality holds the rise in velocity decreased the ratio M/P. c. velocity fell. If monetary neutrality holds the fall in velocity increased the ratio M/P. d. velocity fell. If monetary neutrality holds the fall in velocity decreased the ratio M/P.