Author Question: Suppose a firm can hire 100 workers at 8.00 per hour but must pay 8.05 per hour to hire 101 workers. ... (Read 133 times)

tuffie · **on:** Jun 30, 2018

Suppose a firm can hire 100 workers at 8.00 per hour but must pay 8.05 per hour to hire 101 workers. Marginal factor cost (MFC) for the 101st worker is approximately equal to:
a. 8.00.
b. 8.05.
c. 13.05.
d. 13.00.

Question 2

The effect of automatic stabilizers on the business cycle is to:
a. make upswings larger and downswings smaller.
b. make upswings smaller and downswings larger.
c. make both upswings and downswings smaller.
d. eliminate fiscal drag.
e. make both upswings and downswings larger.