As a fishing firm hires its first, second, and third workers, it could find that marginal product actually rises. The reason for this is
a. diminishing returns have set in
b. the division of labor creates greater productivity
c. the firm has hired another boat
d. all tasks are shared by all workers
e. less qualified workers are becoming available
B
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Official unemployment statistics
A. understate unemployment because individuals receiving unemployment compensation are counted as employed. B. overstate unemployment because workers who are involuntarily working part time are counted as being employed. C. understate unemployment because discouraged workers are not counted as unemployed. D. include cyclical and structural unemployment but not frictional unemployment.
Borrowers and lenders make transactions based on the
A) expected real interest rate less the expected rate of inflation. B) real interest rate. C) expected real interest rate. D) expected nominal interest rate.
A firm sells 20 units of a good at a price of $5 per unit. If the average cost of production of the good equals $3 per unit, the firm's revenue is:
A) $40. B) $60. C) $100. D) $120.
Excise taxes _____
a. can be ad valorem taxes b. can be unit taxes c. are taxes placed on particular types of goods d. all of the above e. b and c