Average product curve tells us:
A. the level of inputs that are the most productive.
B. the cost-minimizing level of inputs to hire.
C. the profit-maximizing level of inputs to hire.
D. All of these are true.
A. the level of inputs that are the most productive.
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As the quantity of labor employed increases, the production functions exhibits a
A) positive, linear relationshi
Suppose real output falls in the aggregate economy. Which is correct?
A) A real business cycle theorist thinks that there was a negative shock to total factor productivity, and that the government should therefore increase expenditures. B) A New Keynesian thinks that the output gap has fallen, and central bank's interest rate target should rise. C) A real business cycle theorist thinks that total factor productivity has risen, and that the government should do nothing . D) none of the above.
A merger between firms that are in the same industry is called a
A) conglomerate merger. B) horizontal merger. C) vertical merger. D) none of the above.
Assume that DeShawn is a single parent who is in poverty. He receives food stamps and Medicaid. For every $100 that he earns, DeShawn loses $35 of his food stamp benefits and $20 in his Medicaid benefits. Also, DeShawn's income is taxed at a rate of 10 percent. Then, Peter's effective marginal tax rate is
a. 45 percent. b. 55 percent. c. 65 percent. d. 70 percent.