The value of marginal product curve is downward sloping because:
A. profits decline as more workers are hired.
B. firms must lower price to sell more.
C. of the law of diminishing returns.
D. at lower wages, only less qualified workers are available.
Answer: C
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A decrease in the discount rate would:
A) decrease bank borrowing of reserves and reflect an expansionary monetary policy. B) decrease bank borrowing of reserves and reflect a contractionary monetary policy. C) increase bank borrowing of reserves and reflect an expansionary monetary policy. D) increase bank borrowing of reserves and reflect a contractionary monetary policy.
The government passed the Economic Recovery Act in October 2008 to prevent the financial crisis from continuing to worsen. A controversial component of this act was the
A) temporary decrease in the federal deposit insurance limit. B) sale of new subprime mortgage assets. C) borrowing of $150 million from AIG. D) Troubled Asset Relief Program (TARP).
An increase in the price of a good could be caused by a. An increase in supply
b. An increase in demand. c. A decrease in supply and an increase in demand. d. Either b. or c.
Which of the following would be counted in U.S. GDP?
a. The salary of an American professor teaching in England b. The value of a used U.S.-produced car purchased in the U.S. c. The value of a new U.S.-produced car purchased by a French citizen d. The value of a new French-produced car purchased by a U.S. citizen within in the U.S. e. The value of a General Electric corporate bond bought by a Japanese citizen