A firm is producing 100 pencils per week. The production process requires labor and capital as inputs. Labor costs $6 per labor hour and capital costs $12 per machine hour. Currently, the marginal product of labor is 18 pencils and the marginal product of capital is 36 pencils. To minimize the cost of producing this level of output the firm should use:
A. More capital and less labor
B. More labor and less capital
C. Less labor and less capital
D. The current amounts of labor and capital
D. The current amounts of labor and capital
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Recall the Added Perspective on the prisoner's dilemma. When there is a prisoner's dilemma,
a. the prisoners stick to a joint strategy b. each prisoner's best strategy is not to confess c. the prisoners must make a once-and-for-all decision d. game theory does not apply e. there is no mutual interdependence
Changing the rate at which the central bank makes loans counts as:
A) fiscal policy. B) monetary policy. C) neither fiscal nor monetary policy. D) both fiscal and monetary policy.
A local government currently has a tax base of $4 million and a tax rate of 5 percent. If the tax rate is increased to 6 percent, the tax base will decrease to $3.5 million. If the goal is to maximize tax revenues the tax rate should be
A. reduced to 5 percent. B. abolished. C. lowered below 5 percent. D. kept at 6 percent.
The health care system in Canada is referred to as ________, and is a system in which the government provides national health insurance to all Canadian residents
A) an out-of-pocket system B) a single-payer health care system C) a universal health insurance system D) socialized medicine