A shoe salesman working on commission must decide whether to work hard or shirk. Working hard would increase the probability of a sale from 20% to 70% but the effort would cost him $5 . If the typical commission on a pair of shoes was $8, would he decide to work hard?
a. Yes because it is higher than what it costs him in effort
b. Yes because it is higher than zero
c. No, because it costs him more in effort
d. None of the above
c
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Under what circumstances would the GDP deflator be less than 100 after the base year?
A) The GDP deflator will be less than 100 if there has been deflation relative to the base year. B) There are no circumstances under which the GDP deflator could be less than 100. C) The GDP deflator will be less than 100 if there has been inflation relative to the base year. D) The GDP deflator will be less than 100 if there has been inflation of less than 2% per year relative to the base year.
At any given point on the curve, the slope of the total product curve always equals
A) the ratio of the marginal product and the average product. B) the change in input divided by the change in output. C) the average product of the input. D) the marginal product of the input.
The market supply curve of capital is
a. upward sloping b. perfectly inelastic c. upward sloping at first but then bends backward d. downward sloping e. perfectly elastic
A good that is both nonexcludable and nonrival-in-consumption is called a
a. common good. b. external good. c. public good. d. private good.