________: is the point at which the marginal physical product curve for a particular input is rising but still lies above the average physical product curve
Fill in the blank(s) with correct word
Stage I
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What does the marginal product of labor curve indicate?
a. Change in output per hour increases at first and then reaches its lowest point when diminishing marginal product sets in.
b. Total output per hour increases at first as the staff grows and then begins to fall when too many employees are working.
c. Marginal product first rises as employees are added and then falls when the number of workers surpasses peak efficiency.
d. Average fixed costs are low at first, rise as employees are added, and then begin to fall toward, but never reach, zero.
One argument for trade restriction that focuses on new industries is that
A) trade barriers must be used to protect all domestic workers. B) tariffs imposed to aid new industries should never be removed. C) new industries are usually capable of competing with established rivals. D) new industries need to be shielded in their early stages. E) trade barriers can be used to enhance national security.
If the opportunity cost of producing extra units of one good (expressed in terms of the amount of another good given up) remains constant, then the shape of the production possibilities curve is:
A. A straight horizontal line B. A straight downward-sloping line C. An upward-sloping line D. A vertical line
People who oppose government intervention to reduce income inequality have sometimes argued that allowing large income gaps can be beneficial because
A. large income gaps increase the incentive to support a market-based economy. B. people with large incomes will feel guiltier about their financial advantages and be motivated to give more to the poor. C. it increases the incentive to work harder to be successful, thereby increasing economic growth. D. the poor will have a shorter life expectancy, leaving more wealth for the successful few.