Jim Smith runs a company that sells encyclopedia sets for $200 each. When he employs 5 workers, they can sell 20 sets per week, while only 17 sets are sold when 4 workers are employed. If the wage of workers in this skill category is $500 per week, should the fifth worker be hired?
a. No, because the MRP of the fifth worker is less than $500 per week.
b. No, because the MRP of the fifth worker is more than $500 per week.
c. Yes, because the MRP of the fifth worker is less than $500 per week.
d. Yes, because the MRP of the fifth worker is more than $500 per week.
d
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Direct finance involves the sale to ________ of marketable securities such as stocks and bonds
A) households B) insurance companies C) pension funds D) financial intermediaries
A change in tastes for U.S. produced goods will
A) shift both the aggregate demand curve and the long-run aggregate supply curve. B) shift the aggregate demand curve. C) shift the short-run aggregate supply curve. D) shift the long-run aggregate supply curve.
Unemployment caused by a recession is called:
a. structural unemployment. b. frictional unemployment. c. involuntary unemployment. d. cyclical unemployment
Suppose you value a special watch at $100 . You purchase it for $75 . On your way home from class one day, you lose the watch. The store is still selling the same watch, but the price has risen to $85 . Assume that losing the watch has not altered how you value it. What should you do?
a. Pay the $85 to buy the watch. b. Wait to see if the watch goes on sale. If the price drops to $75 or less, buy the watch. c. Wait to see if the watch goes on sale. If the price drops to $25 or less, buy the watch. d. Do not buy the watch.