When the total product curve is drawn in a figure that measures employment along the horizontal axis, it is a graph that shows the
A) minimum cost of producing a given amount of output using different techniques.
B) maximum profit attainable for each unit of output sold per unit of labor employed.
C) maximum output attainable for each quantity of labor employed.
D) minimum output attainable for each quantity of labor employed.
C
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Consider the straight-line demand curve illustrated in the above figure. At what price is total revenue maximized?
A) at a price of $8 B) at a price of $6 C) at a price of $4 D) More information is needed to determine the price at which total revenue is maximized.
If the economy is at potential output, the price level can continue to increase
a. True b. False
How has the share of the personal income tax paid by the rich (the top 1 percent of earners) and the not-so-well-off (the bottom half of earners) changed during the last four decades?
a. The rich now pay a larger share and the not-so-well-off pay a smaller share of the personal income tax. b. The rich now pay a smaller share and the not-so-well-off pay a larger share of the personal income tax. c. The share of the personal income tax paid by the rich increased between 1960 and 1980, but the share of the revenues collected from the rich has declined sharply since 1980. d. The relative shares paid by the rich and the not-so-well-off have been virtually unchanged during the last four decades.
Along a given indifference curve, a consumer reduces the quantity of one good in favor of more units of the other. In this situation
A. total utility rises. B. the marginal utility of the first rises and the marginal utility of the second good falls. C. the marginal rate of substitution falls. D. both A and B are correct.