For a competitive firm, the value of output ________ and the marginal product of labor ________ with each additional worker hired.
A. stays constant; decreases
B. decreases; stays constant
C. increases; increases
D. increases; decreases
Answer: A
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Exhibit 30-5
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In your opinion do government policies to stabilize real domestic production have a larger role to play in the IS-LM-FE model or in the monetary approach to the balance of payments? Why? (Note: This question is an extension of the analysis. It is not covered explicitly in the book.)
What will be an ideal response?
What is dopamine? With respect to consumer choice, when does dopamine flow increase and when does it decrease?
What will be an ideal response?
A network externality occurs when
A) there is production cost savings from being networked with suppliers. B) there is production cost savings from being networked with buyers. C) the usefulness of a good is affected by how many other people use the good. D) the usefulness of a good is affected by celebrities who use the good.