Number of CakesVCMCAVCFCTCATC0???50??1?30????2?????503??25???4????155?Table 5.3 presents the cost schedule for Candy's Cakes. If Candy produces zero cake, Candy's total costs are:

The typical relationship between a worker's productivity and the worker's wage rate is

A) high productivity workers receive low wage rates. B) low productivity workers receive low wage rates. C) no link between productivity and wages earned. D) high productivity workers find that their jobs are often outsourced. E) that workers with high productivity need to have their high wages protected by tariffs.

Suppose business confidence decreases causing a reduction in investment. Based on our understanding of the model presented in Chapter 3, we know with certainty that a reduction in investment will cause

A) an increase in the multiplier. B) a reduction in the multiplier. C) a reduction in the marginal propensity to save. D) a reduction in consumption as the economy adjusts to this decrease in investment.