?Table 7.2 shows labor and the quantity of shoes produced by a firm. Given the information in the table below, _____ is the marginal product of the third unit of labor. ? Labor Total product (pairs of shoes) 0 0 1 20 2 50 3 75 4 80 5 75
a. ?75 pairs of shoes
b. ?50 pairs of shoes
c. ?45 pairs of shoes
d. ?25 pairs of shoes
e. ?15 pairs of shoes
Ans: d. ?25 pairs of shoes
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In the aggregate production function Y = A , real business cycle theory treats ________ as the key independent variable
A) potential output B) productivity C) the capital stock D) the labor input
The slope of the total production curve becomes:
A. steeper when marginal product decreases. B. flatter when marginal product decreases. C. negative when marginal product decreases. D. None of these is true.
If the price elasticity of demand for a good is 5, then a 10 percent increase in price results in a
a. 0.5 percent decrease in the quantity demanded. b. 2 percent decrease in the quantity demanded. c. 5 percent decrease in the quantity demanded. d. 50 percent decrease in the quantity demanded.
Consider the supply of orange juice. If the price of orange juice rises, which of the following occurs?
a. Producers of orange juice are satisfied with their revenue and leave production unchanged. b. Producers of orange juice decrease the quantity of orange juice that they produce. c. Producers of orange juice go out of business, and the supply of orange juice shifts to the left. d. Producers of orange juice increase their production of orange juice.