Suppose that your firm's marginal cost of producing a pencil is 5 cents and the average cost of producing a pencil is 7 cents. If your firm is interested in minimizing average total costs, what should your firm do?
A. Increase production.
B. Decrease production.
C. Maintain production at the current level.
D. Look for ways to increase fixed costs.
Answer: A
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The supply of labor curve has a ________ slope because as the real wage rate rises, ________
A) positive; the opportunity cost of leisure rises B) negative; households work more hours C) positive; the opportunity cost of leisure falls D) positive; firms offer more jobs E) negative; firms hire fewer workers
The gambler's fallacy:
A. is the belief that if an event has ever occurred, it is less likely to repeat. B. is the belief that once an event has occurred, it is less likely to repeat. C. is the belief that once an event has occurred several times in a row, it is more likely to repeat. D. is the belief that if an event has never occurred, it is more likely to occur.
If an economy produces 1,000 units of output with a price level of $1 and the money supply (M) is $500, velocity is:
A. 2. B. 500. C. 50. D. 5.
Of the four countries below, which has the highest degree of income inequality?
a. Germany b. Turkey c. South Africa d. Mexico