You Have Been Hired by a Data Processing Firm to Provide

question 118

Multiple Choice

You have been hired by a data processing firm to provide economic advice. The owner of the firm tells you that the firm's only variable input is the number of data-entry operators. The hourly wage for data-entry operators is $15.00. The marginal revenue product curve for data-entry operators reaches its maximum at three workers with a marginal revenue product of $12.00. What advice would you give this firm?

• A) Hire three data-entry operators so as to minimize the amount of money the firm will lose.
• B) Shut down immediately, as the firm is not able to cover all of its variable costs.
• C) Increase the wage rate paid to data-entry operators so that their marginal revenue product will increase.
• D) Produce as much as possible so as to maximize the difference between the wage paid to data-entry operators and their marginal revenue product.

Understand the gender differences in moral decision-making as identified by Gilligan.

Familiarize with the heuristic questions and dilemmas used to study moral development.

Appreciate the core aspects of peacemaking according to Braswell and Gold.

Understand the main objectives and purpose behind Rawls' "A Theory of Justice."

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Definitions:

Market Equilibrium

A situation in which market supply and demand balance each other, and as a result, prices become stable.

Pareto Optimality

A state of allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off.

Partial Equilibrium

An analysis in economics focusing on the equilibrium of a specific sector or market without considering the whole economy.

Equity

The value that would be returned to shareholders if a company's assets were liquidated and all its debts repaid.