The Widget Company has the following production function.
If widgets sell for $6 each and the wage rate is $33, how many workers will the company hire?
A. 4
B. 0
C. 1
D. 2
Answer: A
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In 2012, the poverty line for a family of four was approximately
a. $10,075 b. $13,100. c. $15,700. d. $23,250.
Suppose the state of Illinois passes a law that bans smoking in restaurants. As a result, residents of Wisconsin who do not like breathing second-hand smoke begin driving across the border to Illinois to eat at restaurants there. Which of the following principles does this best illustrate?
a. People respond to incentives b. Rational people think at the margin c. Trade can make everyone better off d. Markets are usually a good way to organize economic activity
The AD curve is:
A. the combination of money and velocity growth rates that add up to a constant amount. B. the combination of inflation rates and real growth rates that add up to a constant amount. C. vertical at the economy's long-run real GDP growth rate. D. horizontal at the economy's long-run inflation rate.
Suppose a 50-seat bus is about to depart from Boston to New York with five empty seats. The total cost to the bus company of the trip is $1,000 and no services, food, or beverages are provided to passengers. Use marginal analysis to develop conditions under which the bus company would be willing to sell tickets for the five remaining seats.
A. The bus company would be willing to sell the five remaining tickets at a price of at least $20 each to cover the cost per seat of those passengers. B. The bus company would be willing to sell the five remaining tickets at any price over $0 because there is no additional cost of five more passengers. C. The bus company would not be willing to sell the five remaining tickets because it already covered the cost of the trip with the revenue from the 45 passengers on board. D. The bus company would be willing to sell the five remaining tickets at a price of at least $25 each because they need to make a profit on each passenger.