As output rises,
A. marginal revenue product declines.
B. marginal revenue product stays the same.
C. marginal revenue product rises.
D. there is no way to determine if marginal revenue product will fall, rise, or remain the same.
A. marginal revenue product declines.
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The demand for labor is a derived demand. Explain what is meant by the term "derived demand."
What will be an ideal response?
The marginal benefit of pollution abatement is the
A) additional cost to clean up an additional unit of pollution. B) additional benefit from cleaning up an additional unit of pollution. C) total social costs of pollution clean-up divided by total social benefits. D) total social costs of pollution clean-up divided by the total units of clean-up.
When the Federal Reserve System wants to increase the money supply, which of the following actions would the Fed choose?
a. It purchases U.S. government securities. b. It increases the discount rate. c. It increases the required reserve ratio. d. It sells bonds on the open market.
Which of the following is NOT an example of an explicit cost?
A. The income the owner could have earned in his or her next best employment opportunity. B. The salaries paid to the managers who help run the business. C. The overtime wages paid to workers. D. The rent the owner pays each month to lease office space.