A firm is thinking of hiring an additional worker to their organization who they believe can increase total productivity by 100 units a week. The cost of hiring him or her is $1500 per week. If the price of each unit is $20,
a. the MR of hiring the worker is $2000
b. The MC of hiring the worker is $1500
c. The firm should hire the worker since MB>MC
d. All the above
d
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Which of the following is an example of in-kind transfer?
a. Social security benefits b. Food stamps c. Disability pensions d. Unemployment compensations e. Earned income tax credit
What should happen to the equilibrium price and quantity in a market as a result of a quota on imports?
A. Equilibrium price should go up, and equilibrium quantity should go down. B. Equilibrium price and quantity should both go down. C. Equilibrium price and quantity should both go up. D. Equilibrium price should go down, and equilibrium quantity should go up.
Related to the Economics in Practice on p.221 [533]: According to a recent study by Simon Gilchrist, Fabio Natalucci, and Egon Zakrajsek, a one percentage point increase in the interest rate appropriate for a firm'?s borrowing will lead to a
A) drop in investment spending of more than one percentage point. B) rise in investment spending of more than one percentage point. C) drop in investment spending of less than one percentage point. D) rise in investment spending of less than one percentage point.
Suppose output is $440 billion, government purchases are $40 billion, desired consumption is $320 billion, and net exports are $35 billion. Absorption is equal to
A) $405 billion. B) $420 billion. C) $435 billion. D) $440 billion.