A farm is able to produce 10,000 bushels of peanuts per season on 10 acres. Assume it adds one more acre and is able to produce 12,000 bushels per season. The marginal product of the additional acre of land for this farm is:
a. 10,000 bushels per acre per year.
b. 1,200 bushels per acre per year.
c. 2,000 bushels per acre per year.
d. 12,000 bushels per acre per year.
c
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If the economy falls into a recession, automatic stabilizers will cause
A. tax receipts to rise and government spending to fall. B. tax receipts to fall and government spending to rise. C. both tax receipts and government spending to rise. D. both tax receipts and government spending to fall.
A vertical aggregate supply schedule implies that
a. real wages cannot impact output. b. unemployment cannot impact output. c. aggregate demand is horizontal. d. the price level does not impact output.
The percentage of U.S. workers in the private sector who belong to unions is currently
A) greater than 50 percent. B) approximately 20 percent. C) approximately 12 percent. D) approximately 8 percent.
The Fed's response to the financial crisis of 2007 and 2008 was to
A. raise the reserve requirement. B. raise the federal funds rate. C. encourage discount window borrowing. D. reduce taxes on financial institutions.