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 As Paper Pushers Inc. hires more workers each hour, the marginal product of labor ________.
A. decreases
B. decreases and then increases
C. increases
D. remains constant
Answer: A
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Fluctuations in the relative demand for checking deposits versus money-market mutual funds causes instability in the overall demand for
A) M1 but not M2. B) M2 but not M1. C) M2 and M1. D) neither M1 nor M2.
When the marginal-cost curve lies above the average-total-cost curve, the average-total-cost curve slopes up and the average-variable-cost curve slopes down
a. True b. False Indicate whether the statement is true or false
According to Keynes, which of the following will cause a change in the consumption component of aggregate demand?
a. Change in foreign demand b. Change in government spending c. Change in desire to save more or less d. Change in relative price increase of U.S. goods
If the price of the output produced by a particular type of labor decreases, which of the following shifts should occur in the labor market for the particular type of labor?
A. Demand for labor should shift to the right. B. Supply of labor should shift to the right. C. Demand for labor should shift to the left. D. Supply of labor should shift to the left.