If the cost efficiency of labor equals 2, then
A. The product price is 200 percent of the wage rate.
B. Each extra dollar spent on wages returns 2 units of additional output.
C. The wage rate is 100 percent more than the product price.
D. Labor costs 100 percent more than the revenue it generates.
Answer: B
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Suppose there are two drivers, Jermaine and Janet. Jermaine is not a very safe driver. In fact, there is a 7.5% chance that he will have an accident within the next year. Janet is a relatively safe driver. Her chances of having an accident in the next year are only 1%. If Jermaine is involved in an accident, he will cost the insurance company $1,000,000. If Janet is involved in an accident, she will only cost the company $500,000. What is the expected pay-out that the company can expect from insuring these two?
What will be an ideal response?
The biggest reform in the federal welfare system in 50 years came in 1997, when the Aid for Families with Dependent Children (AFDC) entitlement program replaced the Temporary Assistance for Needy Families (TANF) program
Indicate whether the statement is true or false
Dynaflex Corp. is considering an investment project that costs $900 today. It expects the project will yield income of $350 at the end of years 1, 2, and 3. If the interest rate is 10%, the firm
A. is just indifferent between undertaking the investment and not. B. should forgo the investment. C. should undertake the investment. D. indeterminate from the given information
Refer to the information provided in Figure 20.4 below to answer the question(s) that follow.
Figure 20.4Refer to Figure 20.4. The domestic price of a leather wallet is $20. With free trade the price of a leather wallet is $10 and after a tariff is imposed the price is $15. After the tariff is imposed, this country will ________ 250 leather wallets.
A. sell B. export C. import D. buy