A profit-maximizing firm will hire extra units of a resource when
a. marginal resource cost exceeds marginal revenue product
b. marginal resource cost is equal to marginal revenue product
c. marginal resource cost is less than marginal revenue product
d. temporary resource price differentials exceed the marginal resource cost
e. the average resource cost and marginal resource cost curves are equal
C
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Gains in railroad productivity were caused by:
a. more powerful locomotives. b. automatic couplers. c. air brakes. d. All of the above are correct. e. Only a and b are correct.
The Fed established stock market margin requirements to reduce the possibility of a stock market panic
Indicate whether the statement is true or false
Which of the following is an example of a progressive tax?
A. A local sales tax. B. An excise tax. C. The federal income tax. D. Social Security payroll tax.
Refer to the above graph. What combination would most likely cause a shift from AD1 to AD2?
A. A decrease in taxes and an increase in government spending B. An increase in taxes and a decrease in government spending C. A decrease in taxes and a decrease in government spending D. An increase in taxes and an increase in government spending