Espresso Yourself Coffee Shop hires workers in a competitive labor market to make coffee. The ingredients required to make each cup of coffee cost 50 cents. The coffee shop's hourly output of coffee varies with the number of workers hired, as shown in the table. Each cup of coffee sells for $2.00.Number ofworkersCoffee(cups/hour)00125245360470575 The most the coffee shop would be willing pay the third worker is ________ per hour.
A. $60.00
B. $45.00
C. $15.00
D. $22.50
Answer: D
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If the source of economic instability is generally variations in spending, then the Fed should
A) buy gold. B) raise taxes. C) set money supply targets. D) print more money.
Suppose that a rules-based monetary policy proposal specifies that the money supply will grow 3 percent each year. If velocity grows 1 percent this year and Real GDP grows 2 percent, the price level will __________ by __________ percent
A) rise; 3 B) fall; 2 C) rise; 2 D) rise; 6 E) fall; 5
Suppose that Norma is disappointed in the revenue her custom dress shop is bringing in. She is thinking of raising the price of each? dress, but she asks you for advice.
A. raise the price if demand is elastic. B. lower the price if the income elasticity of demand is positive. C. lower the price if the income elasticity of demand is negative. D. raise the price if demand is inelastic.
According to John Rawls, if people had to choose an income distribution without any knowledge of their own talents and abilities, they would likely prefer an income distribution that:
A. rewards hard work. B. rewards creativity. C. gives everyone an equal share. D. rewards innate intelligence