Inflation is primarily a problem
a) because even low inflation rates severely hamper GDP growth
b) for those who are heavily indebted
c) when it is volatile and thus unpredictable
d) because it is severely underestimated, especially when products are improving in quality
e) for accounting and record-keeping, but it does not affect the actual trading of goods and services
c) when it is volatile and thus unpredictable
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When the interest rate on a bond is ________ the equilibrium interest rate, in the bond market there is excess ________ and the interest rate will ________
A) above; demand; rise B) above; demand; fall C) below; supply; fall D) above; supply; rise
The political process can impede redistribution goals because _____
a. there are more stingy voters than generous voters b. there are more middle class voters than poor voters c. there are more dumb voters than smart voters d. there are more middle class politicians than poor politicians
Clarke Mementos manufactures small figurines that they sell to retailers around the country. Clarke sells the figurines for $5.00 each, a price the firm considers given. Clarke's production function is given by the expression:
Q = 60L - 0.5L2, where Q = number of figurines per day, and L = number of skilled workers per day. Based on this production function, the average and marginal products of labor are as follows: AP = 60 - 0.5L MP = 60 - L a. Write an expression for the firm's marginal revenue product. b. Clarke currently pays $150 per day (including fringe benefits) for each of its skilled workers. How many workers should the firm employ? c. Clarke's workers are highly skilled artisans with a great deal of job mobility. The firm's managers fear that they must increase the workers' total compensation to $200 per day to remain competitive. What impact would the wage increase have upon the firm's employment?
Which of the following business decisions will be made by firms that are price searchers but not those that are price takers?
a. What combination of resources should be used to produce a product that is supplied? b. What output should be produced? c. What price should be charged? d. What legal structure of business organization (for example, a proprietorship or corporation) should be used?