If the MRPL is greater than the wage rate, and the supply of labor is horizontal, the firm will
A. not change its employment or wage practices.
B. hire more labor.
C. increase the wage paid.
D. hire less labor.
Answer: B
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Suppose we insert $1 in the circular flow economy. If the $1 moves around in the same direction, which answer represents a possible sequence of items purchased or rented?
a. land, labor, capital, entrepreneurship b. land, services, labor, capital c. goods, labor, services, capital d. goods, labor, capital, services e. labor, capital, labor, rent
In the long run, more costs become fixed
a. True b. False Indicate whether the statement is true or false
If the total cost of producing 10 jets is $28 million and the total cost of producing 11 jets is $30 million, this firm is experiencing
A. economies of scale in the range of 10 to 11 jets. B. constant returns to scale in the range of 10 to 11 jets. C. diseconomies of scale in the range of 10 to 11 jets. D. increasing average variable costs in the range of 10 to 11 jets.
Which of the following statements about public goods is not true?
A. They bestow collective benefits on members of society. B. They will be under supplied by the private sector. C. They are only produced by government agencies. D. They are non-excludable since those who do not pay for them cannot be excluded from enjoying them.