A grocery store hires cashiers and baggers. Cashiers earn $8 an hour; baggers earn $4 an hour. The manager, who wants to maximize the number of customers served given a fixed payroll, expects the following productivity from cashiers and baggers: 
Given the above information, with a payroll of $32 (per hour), how should the manager allocate this budget?
A. Hire three cashiers and two baggers
B. Hire four cashiers and one bagger
C. Hire two cashiers and four baggers
D. Hire two cashiers and three baggers
Answer: C
You might also like to view...
Explain how positive externalities cause a wedge between private marginal costs and social marginal costs. Give an example of a positive externality and explain why it is, in fact, a positive externality. Draw a supply/demand diagram and add a social marginal cost curve that represents the presence of the positive externality. Explain the relationship between the equilibrium quantity and that which is socially efficient.
What will be an ideal response?
Which of the following is a characteristic of an institution?
A) The institutions of a nation are permanent and cannot be changed over time. B) Institutions place constraints on the behavior of economic agents. C) Institutions are determined by individual opinions without considering the government's preference. D) Institutions have very little influence on a nation's economic prosperity.
Scarcity requires that people must
A) cooperate. B) compete. C) trade. D) make choices.
Suppose that Fiona spends all of her income on 10 units of good X and 14 units of good Y. Fiona's marginal utility from the 10th unit of good X is 24 utils, and her marginal utility from the 14th unit of good Y is 20 utils. If the price of good X is $8 per unit and the price of good Y is $5 per unit, then to comply with the rational spending rule, Fiona should:
A. continue to purchase 10 units of good X and 14 units of good Y. B. purchase more than 10 units of good X and less than 14 units of Y. C. purchase less than 10 units of good X and more than 14 units of good Y. D. purchase more than 10 units of good X and more than 14 units of good Y.