A profit-maximizing firm in the short run will expand output:
A. Until marginal cost begins to rise
B. Until total revenue equals total cost
C. Until marginal cost equals average variable cost
D. As long as marginal revenue is greater than marginal cost
D. As long as marginal revenue is greater than marginal cost
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When your grandfather keeps a bundle of $100 dollar bills behind a brick in the basement, this is an example of dollars serving as:
A. a store of value. B. a medium of exchange. C. bank reserves. D. a unit of account.
If a consumer receives 20 units of utility from consuming two candy bars, and 25 units of utility from consuming three candy bars, the marginal utility of the second candy bar is
A) 25 utility units. B) 20 utility units. C) 5 utility units. D) unknown as more information is needed to determine the answer.
Juanita, a lawyer, can type faster than Jill, her secretary. Jill, on the other hand, does not have the ability or skills to practice law. Applying the principles of international trade to this situation, an economic consultant advises Juanita to
a. fire Jill, practice law and do the typing because she's better at both b. practice law and leave all the typing to Jill c. divide her time equally between typing and practicing law d. quit law and concentrate on typing because that's her comparative advantage e. quit law and concentrate on typing because that's her absolute advantage
Which of the following events will shift the labor supply curve to the right?
a. More dads leave the work force to spend time raising children. b. Government benefits for the retired are increased. c. Relaxed immigration laws allow more workers to come in from abroad. d. Great new video games are introduced, enhancing the value of leisure.