Refer to the information provided in Figure 10.1 below to answer the question(s) that follow. 
Figure 10.1 Refer to Figure 10.1. This firm is currently hiring 15 workers and paying a wage of $10. This firm should
A. do nothing because it is maximizing profits.
B. increase employment to 17 workers to increase profits.
C. reduce employment to 14 workers to increase profits.
D. reduce employment to 15 workers to increase profits.
Answer: A
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The term "foreign currency" refers to foreign
I. coins II. notes III. bank deposits A) II only B) II and III only C) I and II only D) I, II, and III
The government wishes to close a recessionary gap by increasing national income by $700 billion. The MPC = 0.8 . Two policies are offered. Policy A calls for $180 billion in increased government spending and $50 billion in increased taxes. Policy B calls for $200 billion in increased government spending and $100 billion in increased taxes. Which of the following will increase the national income
by the desired $700 billion? a. Both policies increase national income by $700 billion but Policy B offers a lower budget deficit. b. Both policies increase national income by $700 billion and create equal budget deficits. c. Neither policy increases national income by $700 billion. d. Only Policy A increases national income by $700 billion. e. Only Policy B increases national income by $700 billion.
Suppose that smoking creates a negative externality. If the government imposes a per-cigarette tax equal to the per-cigarette externality, then
a. the after-tax equilibrium quantity of cigarettes smoked will be less than the socially optimal quantity of cigarettes smoked. b. the after-tax equilibrium quantity of cigarettes smoked will be greater than the socially optimal quantity of cigarettes smoked. c. the after-tax equilibrium quantity of cigarettes smoked will equal the socially optimal quantity of cigarettes smoked. d. There is not enough information to answer the question.
In his book The Wealth of Nations, which famous economist argued that economic activity was directed by an "invisible hand"?
a. Adam Smith b. Milton Friedman c. Alfred Marshall d. David Ricardo