A profit-maximizing firm in a competitive market will continue to hire more workers when
A) the marginal factor cost exceeds the marginal revenue product of the additional workers.
B) the marginal factor cost equals the marginal revenue product of the additional workers.
C) the marginal factor cost is less than the marginal revenue product of the additional workers.
D) the marginal factor cost is less than zero.
Answer: C
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Bank A has total deposits of $3 million and total reserves of $1 million. The required reserve ratio is 20 percent. The bank has excess reserves of
A) $20,000 B) $200,000 C) $400,000 D) $40,000 E) There is not enough information provided to answer this question
Which of the following historical events is often cited as an example of the successful implementation of Keynesian theory?
a. the Kennedy-Johnson tax cut of 1964 b. the price controls of the Nixon administration c. the anti-inflation policies of the Carter administration d. the series of tax cuts implemented by the Reagan administration during the 1980s
What is the present value of $5,000 to be received in one year if the current market interest rate is 6.0%?
a. $3,125 b. $4,717 c. $4,923 d. $5,300
Which of the following is a difference between accounting profit and economic profit?
a. Accounting profit includes only the implicit costs of a firm, while economic profit includes only the explicit costs of the firm. b. Economic profit includes explicit and implicit costs of a firm, while accounting profit includes only explicit costs of the firm. c. Accounting profit is calculated for the current year, while economic profit can be calculated only for previous years. d. Accounting profit is the profit that has already been made by a firm while economic profit is the prediction of the firm's profit in future.