A manager maximizes profit when they find a level of output where marginal revenue and marginal cost are equal.
Indicate whether the statement is true or false
QUESTION 2Which of the following observations regarding the Gini coefficient (G) is incorrect?
a. If G is one, the Lorenz curve would overlap the line of perfect income equality.
b. If G is zero, it represents perfect income equality
c. If G is one, it represents perfect income inequality
d. The closer G is to 1 the greater the degree of income inequality
QUESTION 3Which of the following is a cost borne by an employee?
a. The cost incurred in looking for alternative job opportunities
b. A fall in overall productivity as a result of hiring the wrong person
c. The cost of training in the new firm
d. The cost of extra work done by existing employees due to an unfilled position
QUESTION 4Managers should engage in an activity if, on average, it can be done for less that a dollar per unit.
Indicate whether the statement is true or false
QUESTION 5The Lorenz curve represents:
a. the line of perfect inequality.
b. the line of perfect equality.
c. the nonwage income of households.
d. the actual distribution of income.
QUESTION 6Which of the following assumptions is made while determining equilibrium wage and labor employed in the economy?
a. Information about job vacancies is difficult to obtain for workers.
b. Mobility of workers is limited, i.e., workers can not switch jobs easily.
c. Jobs vary widely in scope and responsibilities.
d. All person-hours of labor are treated as identical.
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