Comfy Clothing is thinking of hiring Tom. If hired, he can increase total production by 100 units a week. He would cost the firm $1,500 a week in wages. If the price of each unit is $20,
a. The MR of hiring the worker is $1,500
b. The MC of hiring Tom is $1,500
c. The firm should hire Tom since MR>MC
d. All the above
d
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In the Gordon growth model, a decrease in the required rate of return on equity
A) increases the current stock price. B) increases the future stock price. C) reduces the future stock price. D) reduces the current stock price.
In an open economy, as the price level increases, a(n) ____ in demand in the quantity of domestic goods results in a(n) ____ in the quantity of RGDP demanded
a. increase, decrease b. increase, increase c. decrease, decrease d. decrease, increase
Matt deposits $150,000 into his bank, which has a required reserve ratio of 15 percent. Matt’s bank must keep ______ of this new deposit in its reserves.
a. $10,000 b. $127,500 c. $150,000 d. $22,500
One reason that variable factors of production tend to show diminishing returns in the short run is that:
A. there is only so much that can be produced using additional variable inputs when some factors of production are fixed. B. capital equipment is often idle in the short run. C. large firms cannot effectively manage their resources. D. the cost of employing additional resources increases as firms employ more of those resources.