Number of workersUnits of output00110230344455
Refer to Table 5.1, which gives a firm's production function. Assume that all non-labor inputs are fixed. Diminishing marginal returns set in with the addition of the:
A. third worker.
B. fourth worker.
C. fifth worker.
D. sixth worker.
Answer: A
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Use the data in the table below to answer the next question. The data describes a hypothetical economy and are denominated in billions of dollars.Personal consumption expenditures$4,500Consumption of fixed capital150Gross private domestic investment800Government purchases950Exports65Imports85What is the value of net exports in this economy?
A. ? $20 billion B. ? $65 billion C. $20 billion D. $150 billion
The initial Phillips curve relationship implied that the opportunity cost of _____ was higher _____
a. reducing unemployment; inflation b. increasing unemployment; inflation c. decreasing employment; interest rate d. increasing employment; deflation e. increasing employment; interest rate
The negative slope of the demand curve of a resource indicates an inverse relationship between the price of the resource and the quantity demanded
a. True b. False Indicate whether the statement is true or false
Individuals want nonexcludable public good X, but the market does not provide it because of the free rider problem. Government overcomes the free rider problem by ______________ individuals and then either producing good X itself or paying someone to produce it
A) forcing individuals to work longer hours B) taxing C) surveying D) subsidizing E) none of the above