A ________ occurs when an economic activity has a spillover cost that does not affect those directly engaged in the activity

Looking at the U.S. personal saving rate over the last sixty years, we can say that ________

A) it has always been low B) Americans used to spend a lot more than they have in recent years C) Americans used to save a lot more than they have in recent years D) it has always been fairly high E) Americans spend more when concerned about their future earnings

If the MRP of labor in a firm is $67, and the MLC equals $56, what would you advise the firm to do?

a. Stay at its current output level. b. Hire additional workers. c. Raise prices. d. Reduce employment. e. Reduce the wage rate.