The key assumption underlying the theory of the firm is that:
A) firms are assumed to maximize sales revenue.
B) managers are assumed to maximize the number of employees in their department.
C) firms are assumed to maximize profits.
D) none of the above
C
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Philosopher John Rawls developed a thought experiment to help determine a standard by which we could say individuals are in agreement with the constitutional rules and, thus, actions of government. Behind his "veil of ignorance" _____
a. people know nothing about their friends and family b. people know nothing about themselves c. people know nothing about causal relationships d. people know nothing about politics
As the use of DVDs becomes more widespread, we would expect all of the following except one. Which is the exception?
a. The prices of CDs will decrease. b. The demand curve for CD players will shift leftward. c. The supply curve of CD players will shift rightward. d. The demand curve for CDs will shift leftward. e. Firms will move their resources away from CD production to DVD production.
The discount rate:
A. is the rate of interest charged by the Fed when it lends money to private banks. B. is the reduction in the prime rate that big banks provide to corporate borrowers. C. is always equal to the market rate minus the core rate of inflation. D. is the rate that private banks charge other private banks for a loan.
The labor force includes
A. All persons over the age 21 who are either working for pay or actively seeking paid employment. B. All persons over the age 21 who are working for pay. C. All persons over the age 16 who are either working for pay or actively seeking paid employment. D. All persons over the age 16 who are working for pay.