In a free market, a given unit of an input will be used by the firm that
a. earns the largest addition to total profit from the use of that unit of input.
b. has the lowest marginal cost of producing another unit of output.
c. sells its output for the highest price.
d. earns the largest total profit.
a
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Jane is a 25 year old, full-time student. She works part time in her school library and is paid $7 an hour. She is considered to be
A) not in labor force. B) not in the working-age population because she is in college. C) employed. D) unemployed. E) in labor force but not working.
Canada and the U.S. are the world's greatest trading partners. But they wouldn't trade at all if
a. the opportunity costs for the goods they produce are the same in both countries b. the opportunity costs are unequal for all the goods they produce c. their production possibilities curves are unequal d. they had a history of mutual retaliation e. their resources were of different qualities