The additional output a firm produces by hiring one more worker is called the marginal product of labor
Indicate whether the statement is true or false
TRUE
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Which of the following statements about the economic decisions consumers, firms, and the government have to make is false?
A) Each faces the problem of scarcity which necessitates trade-offs in making economic decisions. B) Both firms and individuals face scarcity. C) Only individuals face scarcity; firms and the government do not. D) Governments face the problem of scarcity in making economic decisions.
If the income elasticity of demand for a service is 0.6, then a 5 percent increase in income will generate a __________ in quantity demanded
a. 3 percent decrease b. 3 percent increase c. 8.33 percent decrease d. 8.33 percent increase e. 0.12 percent decrease
Which of following helps explain the negative slope of the aggregate demand curve?
a. A lower price level increases real wealth, which encourages spending on consumption. b. A lower price level reduces the interest rate, which encourages spending on investment. c. A lower price level causes the real exchange rate to depreciate, which encourages spending on net exports. d. All of the above. e. None of the above.
The concept of the margin deals with:
A) making incremental choices. B) one more or one less of something. C) doing a little more or a little less. D) all of the above.