Question

1. A firm is planning to hire another worker and in total this will cost them $12 per hour. They expect the worker to bring in revenue from extra sales of $18 per hour. They should hire the worker. T/F

2. When a firm produces another unit of output the total cost rises from $700 to $820. It was a good decision to produce this unit. T/F

3. Which of these are an economic decision?

a.) Bill saves 10% of his paycheck each month

b.) John spends 4 hours doing his laundry

c.) George studies for economics three hours per week

d.) All

e.) None

Answer 1

Solution - 1

This is true

Means it is good to hire the worker because the revenue we earn is more than the cost of the worker

Solution 2

This is False

Means it is not a good decision to produce this unit because the cost gets increased in place of decreasing by producing more unit

Solution 3

The correct answer is (A)

That is Bill saves 10% of his paycheck each month