The decision rule for constrained optimization is to select the level for each activity at which
A. total benefit per dollar of total cost is equal across all activities.
B. marginal benefit equals marginal cost for each activity.
C. total benefit equals total cost for each activity.
D. marginal benefit per dollar of marginal cost is equal across all activities.
Answer: D
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The marginal cost of a dollar of loanable funds is not
a. the interest rate b. the same as the marginal physical product of capital c. a measure of the marginal cost of capital d. equal to the marginal revenue product of capital at the firm's profit-maximizing quantity of loanable funds e. the change in a firm's total cost that results from adding one more dollar of loanable funds to production
Which of the following correctly identifies a difference between cross-sectional data and time series data?
A. Cross-sectional data is based on temporal ordering, whereas time series data is not. B. Time series data is based on temporal ordering, whereas cross-sectional data is not. C. Cross-sectional data consists of only qualitative variables, whereas time series data consists of only quantitative variables. D. Time series data consists of only qualitative variables, whereas cross-sectional data does not include qualitative variables.
A government agency is having problems with personal telephone calls made during working hours. Because each minute of a personal call costs the agency $0.50 in wasted wages, it has decided to hire operators to monitor calls. The agency wants to hire the number of operators that will minimize the total cost of personal calls. 
Based on the above information, what is the most the agency would be willing to pay the fifth operator?
A. $100 B. $400 C. $200 D. $500 E. none of the above
Suppose the market for tortillas is initially in equilibrium, but then the equilibrium wage rate and the equilibrium quantity of labor both increased. What happened in the market for tortilla?
A) The demand for tortillas increased. B) The demand for tortillas decreased. C) The supply for tortillas increased. D) The supply for tortillas decreased.