Theories and models are explanations of how things work that help us understand and predict how and why economic agents like consumers, producers, firms, government, etc. behave they way they do

Hershey Chocolate Factory pays a money wage rate equal to $30 per hour and sells its candy bars for $1.50 each. Hershey Chocolate Factory should hire labor until an additional unit of labor produces ________ candy bars an hour

A) 30 B) 20 C) 1.5 D) 45 E) 10

One reason for the huge investment by China into the US economy is the:

A. the desire of China to ‘sink’ the US economy. B. Chinese investors view that US investments are less stable. C. large savings rate in China that encourage capital outflow. D. low savings rate in China which makes the cost of borrowing very low in China.