The division of labor and specialization explain
A) why the average product of labor falls when firms use more capital or change the layout of their businesses.
B) why, when the marginal product of labor increases, so does the average product of labor.
C) why the marginal product of labor rises as a firm hires its first units of labor.
D) why firms may find it profitable to use more workers when the marginal product of labor is negative.
C
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Explain why depositing cash into a checking account does NOT change the money supply
What will be an ideal response?
If the output gap is constant at minus 2 and the inflation rate has fallen from 6 percent to 5 percent, then next period's short-run aggregate supply curve might be ________
A) ? = 5 - 0.5 (13 - 15) B) ? = 5 + 0.5 (13 - 15) C) ? = 4 + 0.5 (13 - 15) D) ? = 5 + 2 (11 - 15) E) none of the above
A white knight is often sought by the target of a potential takeover in order to force the shareholders to settle for lower dividends
Indicate whether the statement is true or false
What to do about inflationary and employment problems in the economy? Conservative economists advocate
a. strong fiscal policy, particularly taxing luxuries b. strong monetary policy, particularly taxing luxuries c. no interference in the private sector d. that to pursue aggressive and consistent policy, the Federal Reserve System should become a department with the executive branch of government e. relying on trends in real business cycles to implement expansionary fiscal policy