Krystal runs a nail salon and needs to decide how many hours to stay open. Table 2.2 illustrates her marginal costs of staying open for each additional hour. Suppose that Krystal's marginal benefit of staying open per hour is $18
If she is following the marginal principle, how many hours should Krystal stay open?
A) 3 hours B) 4 hours C) 6 hours D) 7 hours
A
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Suppose you have $400 and the inflation rate is 5 percent. In order to earn a real return of $16 on your investment, the nominal interest rate needs to be near
A) 0 percent. B) 4 percent. C) 6 percent. D) 9 percent.
Refer to Scenario 17.1. If the threshold educational level y* is set at 14,
A) only individuals in Group A will attain it. B) only individuals in Group B will attain it. C) individuals in both groups will attain it. D) no individuals will attain it. E) some fraction of individuals in each group will attain it.
The slope of the consumption function reflects the
a. average propensity to consume b. the ratio of income to consumption c. marginal propensity to consume d. level of autonomous consumption e. level of income
Keynesians
A. believe capitalism is inherently stable. B. contend that government intervention in the economy is undesirable. C. advocated a laissez faire policy. D. believe wages and prices are inflexible downward.