The demand for labor by a profit-maximizing firm is determined by:
A. VMPL = W.
B. MPL = W.
C. MPL = MC.
D. VMPL = MC.
Answer: A
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A. From which data were first collected. B. In which a series of data reaches an extreme (high or low) point. C. From which the latest data is available. D. Used for comparing the data for other years.
Which of the following equations shows how much X dollars will be worth if invested at an annual interest rate i for t years, if interest is compounded annually?
A. (1 + i) t X B. X/(1 + i) t C. (1 + X)i t D. (X + i)
If the government forces a natural monopoly to produce the output level at which P = MC, the firm will
A. Produce where ATC is at a minimum. B. Fail to produce efficiently. C. Produce less than the profit-maximizing level of output. D. Incur losses.
The Fed's dual mandate is to pursue the goals of
A) high employment and price stability. B) interest rate stability and financial market stability. C) rapid economic growth and low inflation. D) interest rate stability and a balanced budget.