When marginal product is less than average product,
a. average product falls.
b. average product is zero.
c. average product increases.
d. average product is unaffected.
a. average product falls.
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The central idea distinguishing the "efficiency wage model" is that the wage paid by Firm A relative to the wages at other firms helps determine
A) Firm A's demand for labor. B) the amount of labor Firm A can hire. C) the productivity of Firm A's workers. D) Firm A's markup fraction.
In the forex, the demand for dollars will increase if:
A. foreigners wish to buy U.S. goods. B. foreigners wish to sell U.S. financial assets. C. interest rates are lower in the U.S. relative to interest rates abroad. D. interest rates are equal in the US and abroad.
Until the beginning of the 20th century, the overriding and chronic money problem the United States faced was
a. an overreaching and politically controlled Federal Reserve System b. an inability to persuade the Treasury to make open market operations c. the banks' inclination to overissue currency d. the inability of the Federal Open Market Committee to agree among themselves on policy issues e. the linking of fiscal and monetary policy by the central bank
Inflation that occurs when total spending is greater than the economy's ability to produce output at the existing price level is:
A. Anticipated inflation B. Demand-pull inflation C. Cost-push inflation D. Unanticipated inflation