Figure 3.2 shows the total cost and total benefit curves for a professional guitarist. If the guitarist is currently practicing 1 hour per day, then:
A. she should practice more because net benefits would increase.
B. she should practice less because net benefits would decrease.
C. she should practice less because net benefits would increase.
D. she should practice more because net benefits would decrease.
A. she should practice more because net benefits would increase.
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Which of the following addresses agency costs
a. advertising for employee positions in as many outlets as possible b. hiring only from job fairs c. instituting longer work days d. replacing closed offices with cubical office spaces
Which of the following might encourage the government to let inflation rates rise?
A. A higher inflation rate reduces the budget deficit. B. The government has more work to do when there is an AD excess. C. Social Security and retirement benefits are indexed. D. The government has to make higher interest payments with higher inflation rates.
Which of the following correctly explains why sellers in a perfectly competitive market are price-takers?
a. There are few sellers, and so they easily agree to charge a uniform price to their customers. b. There are many small sellers, and so the market process generates an equilibrium price that cannot be influenced by any one seller. c. Sellers in a competitive market have the power to influence price by colluding with one another and using quotas to limit overall market output and thus raise price. d. Individual buyers in a competitive market have the power to influence price, and thus can impose prices and other conditions on powerless sellers.
Why does wind power have economies of scale?
What will be an ideal response?