Suppose that you can schedule a worker for up to 4 hours per day. The total benefit and total cost functions are B(H) = 300H - 20H2 and C(H) = 500H + 60H2. The corresponding formulas for marginal benefit and marginal cost are MB(H) = 300 - 40H and MC(H) = 500 + 120H. For how many hours should you schedule the worker?
A. 1.25 hours
B. 0.8 hours
C. 4 hours
D. 0 hours
D. 0 hours
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Which of the following is not true about the demand curve for labor of a competitive firm? a. As the wage rate the firm pays decreases, the quantity of labor it demands (employs) increases
b. It shows how much labor the firm is willing to employ at different wage rates. c. It is identical to the marginal revenue product curve of labor. d. The wage rate exceeds the workers' opportunity costs. e. It is downward sloping.
A high-ranking corporate official of a well-known company is unexpectedly sentenced to prison for criminal activity in trading stocks. This should
a. raise the price and raise the present value of the corporation's stock. b. raise the price and lower the present value of the corporation's stock. c. lower the price and raise the present value of the corporation's stock. d. lower the price and lower the present value of the corporation's stock.
The new term introduced in the extended IS-LM model is
A) risk premium. B) nominal interest rate. C) taxes. D) G.
The Fed's open market operations normally involve only the purchase of government securities, particularly those that are short-term. However, during the crisis, the Fed started new programs to purchase
A) mortgage-backed securities and long-term Treasuries. B) mortgage-backed securities and Treasury bills. C) commercial papers and short-term Treasuries. D) Treasury bills and Treasury notes.