Which of the following statements regarding comparisons of productivity across two firms is true?
A. The firm with the higher APL is the more productive firm.
B. The firm with the higher MPL is the more productive firm.
C. The firm with the lower MPL is the more productive firm.
D. The average product of labor can vary with the choice of inputs and the level of outputs, so the firm with the higher APL may not be the most productive.
D. The average product of labor can vary with the choice of inputs and the level of outputs, so the firm with the higher APL may not be the most productive.
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Suppose the CEO of a major corporation has five subsidiary companies. Only one of these companies is making better than the return on similar investments that the company could be making if it invested its financial capital outside the company
The CEO tells each of these subsidiary companies that the rate of return that they are earning is not acceptable and must rise to the level of these identified companies. He tells them if they can't come up with a plan in twelve months that their companies will be sold. If each of these companies was actually making money can you come up with an economic argument for why it is still rational for this CEO to sell them if they don't abide by his directive.
When drawn against the real interest rate, the output demand curve shifts to the right when
A) current total factor productivity z increases. B) current total factor productivity z decreases. C) future total factor productivity z' increases. D) future total factor productivity z' decreases.
Consider the two following statements: I. x is an inferior good. II. x exhibits Giffen's Paradox. Which of the following is true?
a. I implies II, but II does not necessarily imply I. b. II implies I, but I does not necessarily imply II. c. I and II are statements of the same phenomenon.
The demand curve for foreign exchange is
a. downward sloping. b. upward sloping. c. horizontal because no individual country can influence the price of foreign exchange. d. dependent on the supply of foreign exchange.