Ajax has just discovered that the marginal revenue product generated by the last worker hired was $125 while the marginal factor cost was $85. What should Ajax do?
A) Leave the level of production unchanged.
B) Increase the amount produced.
C) Reduce the amount produced.
D) Collect more information before making a decision.
B
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Having one central bank responsible for managing the common currency and replacing the national monetary authority provides benefits that include all of the following, EXCEPT:
A) independence and the ability to resist political pressure. B) better performance in keeping inflation stable with no large swings in unemployment. C) the ability to tailor the supply of money for a variety of economic conditions in the member states. D) provision of a stable nominal anchor.
Consider the following economic agents:
a. the government b. consumers c. producers Who, in a centrally planned economy, decides what goods and services will be produced with the scarce resources available in that economy? A) producers B) consumers C) the government, consumers, and producers D) consumers and producers E) the government