If governments operated like businesses, meaning their goal was to maximize profits, why would they likely never give up the power to print money to any other institution?
What will be an ideal response?
Printing money can be a very profitable enterprise. The actual cost of printing currency is a few cents per bill; however, the bills can be used to purchase real goods and services.
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If leisure is drawn on the horizontal axis and labor is drawn on the vertical axis, then a person who attaches more importance to leisure than to labor will have indifference curves that:
A. tend to be steeper. B. tend to be flatter. C. will be positively-sloped. D. will be L-shaped.
Raiman's Shoe Repair produces custom-made shoes. When Mr. Raiman produces 12 pairs per week, the marginal cost of the 12th pair is $84, and the marginal revenue of the 12th pair is $70 . What would you advise Mr. Raiman to do?
a. shut down the business b. produce more custom-made shoes c. decrease the price d. produce fewer custom-made shoes
Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch.
Suppose Lee and Cody enter into a binding non-aggression agreement. As part of that agreement, they negotiate a fine that Cody would have to pay to Lee if Cody chooses aggression after Lee chooses cooperation. For the fine to be effective, it would have to be:
A. equal to 40. B. equal to 25. C. less than 15. D. at least 15.
The effects of the national health care program on labor markets will
A) increase the quantity supplied of labor.
B) decrease the quantity supplied of labor.
C) increase the quantity demanded for labor.
D) decrease the quantity demanded for labor.