A firm replaces a machine by hiring 3 hourly production workers instead.
a. Both its fixed and variable costs will fall
b. Both its fixed and variable costs will rise.
c. Its fixed costs will rise and its variable costs will fall.
d. Its fixed costs will fall and its variable costs will rise.
d
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The above table gives information for the nation of East Hampton
a. Find aggregate planned expenditure for each level of real GDP. b. What is the MPC? c. What is the equilibrium level of real GDP?
When pollution problems arise from a sudden crisis, pollution taxes are a useful form of control
a. True b. False Indicate whether the statement is true or false
Americans would probably be supportive of
a. strict controls on hours of work. b. limits on income potential. c. mandatory work limits. d. loose controls on economic activities.
The possibility that a borrower might engage in riskier behavior after a loan is made is called
A. liability aversion. B. adverse selection. C. moral hazard. D. the risk of default.