Author Question: About six months ago, Pat lost the job as vice president of a local bank. Since losing the job, Pat ... (Read 94 times)

AEWBW · **on:** Jun 29, 2018

About six months ago, Pat lost the job as vice president of a local bank. Since losing the job, Pat still has the Sunday newspaper delivered every week. For Pat, the Sunday newspaper is

A) income inelastic.
B) price inelastic.
C) an inferior good.
D) a normal good because Pat still buys the paper even with a big loss of income.

Question 2

If a firm finds that, at its current level of employment, VMP > W, it will

A) be maximizing profits.
B) be minimizing profits.
C) increase the amount of labor it hires.
D) decrease the amount of labor it hires.