If MFC > MRPL, the firm should

A. get rid of some capital.
B. lower wages.
C. reduce the number of workers.
D. hire more workers.


Answer: C

Economics

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Use the following diagram to answer the next question. The diagram illustrates the pattern of

A. wage movements over time. B. business cycles. C. price level movements. D. economic growth patterns.

Economics

Which of the following statements is true?

A) There always exists some amount of unemployment in an economy. B) The unemployment in an economy normally increases at times of expansion and decreases at times of contraction. C) In almost every economy, each job opening is instantly filled by a qualified worker. D) The unemployment rate in an economy is constant over the long run.

Economics

Refer to Figure 14-1. Should Lexus lower its price in order to deter BMW's entry into the luxury hybrid automobile market?

A) Yes, it will drive BMW out of the market. B) No, it should keep the same price and work to capitalize on its brand loyalty. C) In terms of profit earned, it makes no difference whether Lexus lowers its price or not; in either case it will make $280 million profit if BMW enters. D) No, because BMW will enter the market regardless of Lexus' decision about its price.

Economics

How would government's role differ between the balanced and unbalanced growth models?

What will be an ideal response?

Economics