The Bubby Gum factory produces bubble gum. Joanne is one of the employees, and she produces 10 packs of bubble gum per hour. Joanne's money wage rate is $12 per hour. Based on this information, the Bubby Gum company should
A) fire Joanne because she creates a loss for the firm.
B) increase its demand for labor.
C) decrease Joanne's wage rate because she is paid too much.
D) keep Joanne because she creates a profit for the firm.
E) None of the above answers is correct because more information about Joanne's real wage is needed to decide what to do.
E
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Considering how a change in one variable affects the value of another variable is called
A) the principle of supply and demand. B) the marginal principle. C) the Peter Principle. D) functional decision making.
Determining who receives scarce goods by the criterion of willingness to pay tends to enhance the freedom and power of people who want the goods because
A) it enables everyone to obtain at least a little of everything. B) it facilitates choice by everyone on the basis of their own specific situation. C) it gives everyone an equal chance. D) it makes sure the people who obtain scarce goods are the people who most deserve them. E) it puts genuine need ahead of politics.