If laborers become more efficient over time, and if Company X would want to expand production, it would
A. substitute capital for labor.
B. produce less product.
C. hire more laborers.
D. hire fewer laborers.
Answer: C
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Refer to Figure 16-3. Suppose Chantal charges all her customers a uniform price of $10 for a haircut. Which of the following statements is true?
A) Chantal is maximizing revenue in market B. B) Chantal is selling more than the profit-maximizing quantity of haircuts in market B. C) Chantal is selling less than the profit-maximizing quantity of haircuts in market B. D) Chantal will earn a greater profit through uniform pricing than if she practices price discriminates.
Consider the following short-run production function: q = 5 - 1/3 . At what level of L do diminishing marginal returns begin? At what level of L do diminishing returns begin?
What will be an ideal response?
If there is a political business cycle and the Federal Reserve supports the incumbent, then we should expect that prior to elections
a. interest rates and output would rise.
b. interest rates would rise and output would fall.
c. interest rates would fall and output would rise.
d. interest rates and output would fall.
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.