Paper Pushers Inc. hires workers in a competitive labor market. Apart from labor, the company has no other variable inputs. The company's hourly output varies with the number of workers hired, as shown in the table. WorkersPages/hour0014027531054125514061507155 The VMP of the sixth worker is ________ than the VMP of the fourth worker because ________.
A. more; of the law of increasing returns
B. more; workers can specialize and exploit their comparative advantage
C. less; the firm experiences economies of scale
D. less; of the law of diminishing returns
Answer: D
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The aggregate production function used in the Solow model expresses GDP as a function of:
A) level of technology and total efficiency units of labor only. B) physical capital and level of technology. C) physical capital and total efficiency units of labor only. D) physical capital, level of technology, and total efficiency units of labor.
According to this Application, the recessions in 1973 and 1979 were caused by
A) foreign monetary developments. B) deflation. C) arbitrage losses in the foreign exchange market. D) supply shocks.
Why was the recovery from the 2008–2009 recession so slow?
What will be an ideal response?
The lowest-income fifth of the U.S. population ordinarily earns about 20 percent of the income.
Answer the following statement true (T) or false (F)