Explain how businesses decide how much labor to hire in order to produce a certain level of output
What will be an ideal response?
Owners have to consider how the number of workers they hire will affect their total production. They have to determine if hiring more workers is cost efficient and in the end increases or decreases the revenue.
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American Idol is a popular television program where contestants compete to win a $1 million record deal. To determine the winner, fans either dial the number or send a text message indicating their favorite contestant
The contestant with the highest number of texts and phone calls wins. What is the scarce resource in this example? A) $1 million record deal B) television ratings C) phone calls and text messages D) fans
Marginal benefit is equal to the ________ benefit a consumer receives from consuming one more unit of a good or service
A) additional B) unintended C) total D) surplus
Refer to Figure 6-8. Identify the two goods which are substitutes
A) Good X and Good Z B) Good Y and Good Z C) Good X and Good Y D) It is not possible to distinguish any relationship among the goods.
What is the order in which an economy tries to solve the issue of resource allocation?
a. Production planning, distribution, and output selection. b. Output selection, production planning, and distribution. c. Production planning, output selection, and distribution. d. Distribution, production planning, and output selection.