When drawn against the real interest rate, the optimal investment schedule shifts to the right if the
A) current capital stock K increases.
B) current capital stock K decreases.
C) future capital stock K' increases.
D) future capital stock K' increases.
B
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Mike and Tom debone chicken breasts for Ted's Chicken Co. Mike is new and can only debone 60 chicken breasts per hour by hand, while Tom's experience allows him to debone 120 chicken breasts per hour by hand. Ted buys one new machine that can debone 100 chicken breasts per hour. Both Mike and Tom work the same 40 hours per week, but one of them is assigned to operate the machine instead of deboning the chicken breasts by hand. To obtain maximum average hourly productivity, ________ is assigned to use the machine and their combined average hourly productivity as a team is ________ chicken breasts.
A. Mike; 110 B. Tom; 80 C. Mike; 80 D. Tom; 110
When measuring GDP by the income approach, wage income includes i. health-care insurance paid for by the firm for its employees. ii. Social Security contributions made by the firm. iii. wages paid during a worker's vacation time
A) i, ii and iii B) i and ii only C) i only D) ii only E) ii and iii only
The income effect of a decrease in the price of potatoes (an inferior good) is a(n)
a. decrease in the demand for potatoes b. decrease in the quantity demanded of potatoes c. increase in the demand for potatoes d. increase in the quantity demanded of potatoes e. new demand curve because everything else is no longer constant
Producer surplus is
a. measured using the demand curve for a good. b. always a negative number for sellers in a competitive market. c. the amount a seller is paid minus the cost of production. d. the opportunity cost of production minus the cost of producing goods that go unsold.