Jesse wants to maximize her net gains from working. She estimates that the 12th hour of work per week yields $10 of additional monetary and nonmonetary benefits, but involves $9 in additional costs. She should:
a. work for only 11 hours per week, since the 12th hour yields such a small net gain.
b. work the 12th hour only if she can negotiate a higher wage for that hour.
c. definitely work the 12th hour since doing so raises her net gain from working.
d. work for only 11 hours since it doesn't make sense to undertake work that has positive costs associated with it
Ans: c. definitely work the 12th hour since doing so raises her net gain from working.
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Refer to the table above. If the income of the consumer is $24, the optimal choice contains:
A) 1 quart of juice and 1 quart of milk. B) 3 quarts of juice and 4 quarts of milk. C) 4 quarts of juice and 4 quarts of milk. D) 4 quarts of juice and 5 quarts of milk.
When a company is faced by a kinked demand curve, the marginal revenue curve
A) will be upward sloping. B) will be horizontal. C) will always be zero at the quantity produced. D) will be discontinuous.
If the government wanted to reduce the quantity of a good traded, it could do so by: a. setting a price ceiling for the good below the equilibrium price. b. setting a price floor for the good above the equilibrium price. c. taxing the good more heavily
d. doing any of the above.
What are the two short-run effects of increasing the quantity of nation's money?