Paper Pushers Inc. hires workers in a competitive labor market. Apart from labor, the company has no other variable inputs. The company's hourly output varies with the number of workers hired, as shown in the table. WorkersPages/hour0014027531054125514061507155 If each page sells for $2 and the market wage is $15 per hour, then this firm will hire ________ workers per hour.
A. 4
B. 6
C. 5
D. 7
Answer: B
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A) National Bureau of Economic Research, NBER. B) Bureau of Economic Analysis, BEA. C) Bureau of Labor Statistics, BLS. D) none of the above.
In a small open economy, the real interest rate will always be
A) above the world real interest rate. B) below the world real interest rate. C) equal to the world real interest rate. D) independent of the world real interest rate.
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A firm increases its price from $8 to $10 and sees demand for the product fall by 25%. What would the price elasticity of demand be for this product?
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