At a given level of labor employment, knowing the difference between the average product of labor and the marginal product of labor tells you
A) whether increasing labor use raises output.
B) whether increasing labor use changes the marginal product of labor.
C) whether economies of scale exist.
D) whether the law of diminishing returns applies.
E) how increasing labor use alters the average product of labor.
E
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Drawing on her account at Regional Bank, Samantha writes a check to Isabella, who deposits the check in her account at Local Bank. Once the check has cleared, which of the following will occur to the reserves of the banking system and the M1 money supply?
a. Bank reserves will increase; M1 will increase. b. Bank reserves will increase; there will be no change in M1. c. There will be no change in bank reserves; M1 will increase. d. There will be no changes in either bank reserves or M1.
Since 1942, the number of school districts in the United States has declined by almost _____ districts
a. 25,000 b. 50,000 c. 75,000 d. 100,000
Since classical economists and monetarists believe that the economy operates at full employment, real GDP, that is, along the vertical segment of aggregate supply,
a. any increase in the money supply can only end up raising the price level b. any increase in the money supply can only end up lowering the price level c. any decrease in the money supply can only end up raising the price level d. changes in the money supply will not affect the price level e. any increase in the money supply will cause both nominal and real GDP to increase
Suppose the United States imports coffee from Brazil. Which of the following is a likely impact of this trade? a. The owners of the land used to grow coffee in the United States will be worse off
b. The producers of coffee-flavored candies in the United States will face higher costs of production. c. The consumers of coffee in the United States will face a higher market price. d. The workers in coffee plantations in the United States will be better off.