An agency is having problems with personal phone calls made during working hours. Each minute of a personal call costs the agency $0.50 in wasted wages. The agency hires operators to monitor calls in order to attain the optimal number of personal calls (minimize total cost of personal calls).
Based on the above information, if operators receive $25 an hour, how many operators should the agency hire?
A. 0
B. 1
C. 2
D. 3
E. 4
Answer: C
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Governments exist to
A) maintain property rights. B) provide non-market mechanisms for allocating scarce resources. C) implement arrangements that redistribute wealth and income. D) all of the above.
Consumers are willing to pay a higher price for a product with a brand name as opposed to a generic product because:
a. a brand name provides a signal about a product's quality and reliability. b. they are willing to pay more for the privilege of watching the firm's commercials. c. a product with a brand name is always of higher quality. d. consumers maximize utility by purchasing the most expensive products. e. consumers are irrational.
Higher tariffs and quotas cause a country's currency to ________ in the ________ run, everything else held constant
A) depreciate; short B) appreciate; short C) depreciate; long D) appreciate; long
The incentive to work is an ingredient of the negative income tax because:
a. if families do work, they will be eliminated from the program. b. if families don't work, they will be eliminated from the program. c. the more income earned in the workplace, the higher the family's after-tax income. d. the more income earned in the workplace, the higher the payment from the government. e. the amount earned in the workplace is not subject to income taxes.