Assuming labor is the only variable factor of production, production of a good will occur
A. as long as the marginal revenue product of labor is positive.
B. if the marginal cost of a unit of output equals the marginal revenue product of labor.
C. if society values a good more than it costs firms to hire the workers to produce the good.
D. as long as the product's price is greater than the marginal revenue product of labor.
Answer: C
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All else equal, a decrease in the demand for oranges will lead to a(n) ________ in equilibrium price and a(n) ________ in equilibrium quantity.
A. increase; decrease B. decrease; decrease C. increase; increase D. decrease; increase
When potential GDP increases, short-run aggregate supply also increases, but long-run aggregate supply does not change
Indicate whether the statement is true or false
The central fact of economics is
A. Production. B. Equilibrium. C. Efficiency. D. Scarcity.
Inflation caused by an increase in aggregate spending is referred to as:
A. demand-push inflation. B. demand-pull inflation. C. hyperinflation. D. cost-push inflation.