Figure 17.2 depicts a firm's marginal revenue product curve. If the marginal product of the second worker is 10 units of output, what is the price of output?
A. $3
B. $4
C. $5
D. $6
Answer: A
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Borrowed funds that are to be repaid in a year or more are referred to as:
A) long-term debt. B) loanable funds. C) annual debt. D) stockholders' equity.
Assume the marginal propensity to consume (MPC) is 0.75 and the economy is in recession with real GDP $1 trillion below full-employment real GDP. To achieve full employment, aggregate demand (AD) must be increased $2 trillion. Following discretionary fiscal policy, government spending should be increased:
a. $0.25 trillion. b. $1 trillion. c. $0.5 trillion. d. $2 trillion.
What is a central reason monopoly forces are especially strong in sectors dominated by platform businesses?
A. High marginal costs of production B. Network externalities C. Patent protections D. International trade restrictions
Instruments that can be used to control overuse of a common resource include
A. privatizing the resource. B. taxes. C. standards. D. all of the above