A monopolist has equated marginal revenue to zero. The firm has:
A) maximized profit.
B) maximized revenue.
C) minimized cost.
D) minimized profit.
B
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The function that shows the inverse relationship between planned consumption and investment spending and the real interest rate, all else constant, is called the:
A) interest-related expenditure function. B) aggregate expenditure function. C) consumption function. D) investment function.
If a bank has $50,000 in excess reserves at the end of a business day and the required reserve ratio is 20 percent, the bank can increase its profits by: a. keeping the excess reserves
b. loaning out $40,000. c. loaning out $50,000 to another bank. d. borrowing $50,000 to remove the excess reserves. e. keeping $10,000 and depositing $40,000 with the Fed.
Suppose the dollar depreciates from 89 Japanese yen to 79 Japanese yen. One would expect
a. U.S. imports to increase b. U.S. exports to increase. c. Japanese exports to increase. d. Japanese net exports to increase.
A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $40,000 while a market researcher receives $20,000. The marginal contribution of engineers and market researchers are:
Based on the above information, how should a manager with an annual budget of $240,000, allocate this budget in order to maximize the number of new products developed?
A. Hire three engineers and five market researchers. B. Hire four engineers and four market researchers. C. Hire five engineers and two market researchers. D. Hire three engineers and four market researchers.