The additional revenue a firm obtains when it hires an additional worker (holding other inputs constant) is the
A. marginal physical product (MPP) of labor.
B. marginal revenue product (MRP) of labor.
C. total factor cost (TFC) per worker.
D. general rule for hiring.
Answer: B
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As a result of financial deregulation
A) the IS curve became flatter and the LM curve became steeper, with the result that the interest rate became more volatile. B) the IS curve became steeper and the LM curve became flatter, with the result that the interest rate became more volatile. C) both the IS curve and the LM curve became steeper, with the result that the interest rate became more volatile. D) both the IS curve and the LM curve became flatter, with the result that the interest rate became more volatile.
Nations will be able to produce a larger joint output and realize mutual gains when each specializes in the production of those items for which it is a low-opportunity cost producer and trades for those things that it could produce only at a high cost. This statement best describes the
a. free rider problem. b. infant-industry argument. c. law of comparative advantage. d. equation of exchange.
Each of the following is a provision of the 1996 welfare reform law except that
A. the federal guarantee of cash assistance for poor children is ended. B. the head of every welfare family would have to work within 2 years or the family would lose benefits. C. after receiving welfare for two months adults must find jobs or perform community service. D. women who have more children while on welfare will have their benefits reduced.
The primary means of achieving long-run economic growth is:
A. increased capacity utilization, which is represented by a movement from a point inside the production possibilities curve to a point on the curve. B. movement from an undesirable point on a given production possibilities curve to a more desirable point on a given production possibilities curve. C. an emphasis on macroeconomic stabilization. D. represented by changes in a nation's productive capacity, represented by an outward shift of the production possibilities curve.