If a firm’s marginal physical product is 5, and it sells its product for $60, and a unit of labor costs $200, the firm should
A. increase the use of labor.
B. decrease the use of labor.
C. decrease the price of the product.
D. reduce output of the product.
Answer: A
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The MPC is equal to the
A) level of consumption expenditure divided by the level of total disposable income that brought it about. B) change in consumption expenditure divided by the total disposable income that brought it about. C) change in disposable income divided by the change in consumption expenditure. D) level of consumption divided by the change in disposable income that brought it about. E) change in consumption expenditure divided by the change in disposable income that brought it about.
As a "central bank," which of the following is TRUE regarding the Fed?
I. The Fed is a public authority that regulates the nation's banks. II. The Fed is not allowed to provide services to commercial banks like Citibank. III. The Fed is required to provide banking services to private citizens. A) I B) II C) I and II D) I and III
Why doesn't the process of electing officials prevent rent-seeking and corruption?
A. The cost of gathering such information is often too costly. B. Those who win special favors through this behavior simply pay others off to keep them from whistleblowing. C. It actually does prevent this behavior in the real world. D. People are generally disinterested in preventing both of these in government.
Points on the utility possibility frontier are
A. inefficient. B. points of incomplete preferences. C. not producible. D. Pareto.