Refer to the table below. If the cost per unit of advertising is constant at $550, what is the level of advertising per week that maximizes the industry joint profit?
Suppose the dairy industry is made of up only by the three firms above; Cow Haven, Free Cows, and Happy Cows.
A) 4 B) 5 C) 3 D) 2
B) 5
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Which of the following is part of Keynesian economic theory?
a. total output adjusts to aggregate expenditure b. the aggregate supply curve is horizontal c. businesses adjust their level of output to meet the demand for output d. All of these.
Inflation is measured by an increase in:
a. homes, autos and basic resources. b. prices of all products in the economy. c. the consumer price index (CPI). d. None of the answers are correct.
When a worker and firm are matched on the hedonic wage function, it is implied that
A. the firm could increase its profits by offering a safer job as doing so would allow the firm to lower the wage it pays. B. the hedonic wage function must be very steeply sloped to ensure that the worker does not accept a better paying job. C. the worker receives no surplus from the match. D. the worker-firm match is efficient in the sense that neither the worker nor the firm could become better off with a different match. E. the worker cannot receive a higher wage at any other firm.
Real GDP is calculated by:
A. multiplying nominal GDP by the appropriate price index times 100. B. dividing nominal GDP by the inflation rate times 100. C. dividing nominal GDP by the appropriate price index times 100. D. multiplying nominal GDP by the inflation rate times 100.