Jim Smith runs a company that sells encyclopedia sets for $200 each. When he employs 5 workers, they can sell 20 sets per week, while only 17 sets are sold when 4 workers are employed. If the wage of workers in this skill category is $500 per week, should the fifth worker be hired?
a. No, because the MRP of the fifth worker is less than $500 per week.
b. No, because the MRP of the fifth worker is more than $500 per week.
c. Yes, because the MRP of the fifth worker is less than $500 per week.
d. Yes, because the MRP of the fifth worker is more than $500 per week.
d
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The benevolent social planner would like to see people take
A) all possible precautions. B) all cost-justified precautions. C) only cost-justified precautions. D) both b and c
Dimitry’s country has a population growth rate of 1 percent and an output growth rate of 2 percent. What would happen to the per capita output if the population were to begin increasing at a rate of 3 percent, while output growth stayed at 2 percent?
a. It would be unaffected. b. It would rise. c. It would fall d. It would fall, then rise.