Explain how economists determine whether a government program should be reduced or eliminated
Please provide the best answer for the statement.
Economists determine whether a program should be reduced or eliminated by comparing the marginal benefit of the program to the marginal cost. If the marginal cost is greater than the marginal benefit the program should be reduced up to the point at which the marginal cost is equal to the marginal benefit. If the program marginal cost is above the marginal benefit at all levels of production, the program should be completely eliminated.
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So long as the absolute value of the price elasticity of demand for a firm's output is greater than 0, the firm's optimal markup factor will be positive as well
Indicate whether the statement is true or false
Refer to the above table. Suppose the price of the good sold is $10 and the marginal factor cost of labor is $700, how many units of labor will the firm hire?
A) 10 B) 11 C) 12 D) 13
If a firm reacts to other firms' market decisions by anticipating how the others will then react, this reflects
a. the behavior of followers of a price leader b. the behavior associated with price leadership c. a market with a low concentration ratio d. mutual interdependence e. collusion by definition
Given the following information, how many people are in the labor force? 4 million people are collecting unemployment insurance; 8 million people are officially unemployed; 3 million people are discouraged workers; and 115 million people are employed.
What will be an ideal response?