Holding the price of a firm's output constant, if the marginal product of labor increases
A) the marginal products of other inputs also increase.
B) the marginal revenue product of labor also increases.
C) the marginal revenue product of labor may increase or decrease.
D) the marginal revenue product of labor decreases.
B
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If a firm fails to provide investors with at least a normal rate of return,
A) it will have a positive economic profit but a negative accounting profit. B) it will not be able to remain in business in the short run. C) it will shut down in the short run but will be able to remain in business in the long run. D) it will not be able to remain in business in the long run.
A consumer or producer who does not pay for use of a nonexclusive good but expects others to pay is known as a:
A) free rider. B) price setter. C) fringe element. D) none of the above
An increase in the price of a firm's output will shift the firm's demand curve for labor to the right, other things being equal
a. True b. False Indicate whether the statement is true or false
The Employment Act of 1946 states that
a. the Fed should use monetary policy only to control the rate of inflation. b. the government should promote full employment and production. c. the government should periodically increase the minimum wage and unemployment insurance benefits. d. All of the above are correct.