At what point should a firm stop hiring workers?
A. when the firm's marginal gain in output from hiring an additional worker is zero
B. when the wage per worker starts to increase
C. when the firm's marginal profit from hiring an additional worker equals the cost of hiring that worker
D. when the firm's value of marginal product equals zero
E. when the price of capital starts to decrease
Answer: C
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Positive economic analysis answers what question?
What will be an ideal response?
Which of the following factors tends to lower the average wages for women?
a. Women leaving the workforce to raise their children b. Women receiving less than one-third of all advanced degrees c. Fewer women earning college degrees than in the past d. Fewer women seeking experience in the service industry
Is increased production of a good beneficial to society?
a. Yes, because scarcity is such an overriding concern. b. Yes, because more is always better. c. Maybe, it depends on what is foregone. d. No, because increased production does not increase utility.
When quantity supplied is greater than quantity demanded, market price is _______ the equilibrium price.
Fill in the blank(s) with the appropriate word(s).