A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $40,000 while a market researcher receives $20,000. The marginal contribution of engineers and market researchers are:
Based on the above information, if the manager has an annual budget of $140,000 and currently is hiring two engineers and three market researchers, then
A. he is making the correct decision because the last market researcher hired was more productive than the last engineer hired.
B. the last dollar spent on an engineer yielded more new products than the last dollar spent on a market researcher.
C. he is making the correct decision because engineers make more than market researchers.
D. the last dollar spent on a market researcher yielded more new products than the last dollar spent on an engineer.
Answer: B
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The purpose of the disclosure requirements of the Securities and Exchange Commission is to
A) increase the information available to investors. B) prevent bank panics. C) improve monetary control. D) protect investors against financial losses.
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.
Aggregate income is a measure of:
A. income households have available to spend before paying personal taxes. B. the market value of total output. C. income households have available to spend after paying personal taxes. D. household and business earnings from the sale of productive resources.