What does the firm experience when workers are hired after the point at which supply and demand meet?
a. Marginal revenue product rises.
b. Marginal productivity increases.
c. Variable costs of labor are reduced.
d. Additional workers are unprofitable.
d. Additional workers are unprofitable.
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Consumer’s surplus exists only for the last unit of a good that a buyer has purchased.
Answer the following statement true (T) or false (F)
The major contribution of goldsmiths to the development of modern banking was
a. local banking. b. market banking. c. fractional reserve banking. d. gold standard banking.
Which of the following statements about nominal GDP and real GDP is correct?
a. Nominal GDP is a better gauge of economic well-being than real GDP. b. Real GDP is a better gauge of economic well-being than nominal GDP. c. Real GDP and nominal GDP are equally good measures of economic well-being. d. Neither nominal nor real GDP provide a measure of economic well-being.
The All Smiles Greeting Card Company wants to increase the quantity of greeting cards it sells by 20%. If the price elasticity of demand is -5.0, the company must
A. decrease price by 0.25%. B. decrease price by 4.0%. C. increase price by 4.0%. D. increase price by 0.25%.