When the marginal product of labor is below the average product of labor, the average product must increase when employment increases
Indicate whether the statement is true or false
FALSE
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An increase in the saving rate would, other things the same,
a. increase growth more for a poor country than for a rich country, and raise growth permanently. b. increase growth more for a poor country than for a rich country, but raise growth temporarily. c. increase growth more for a rich country than for a poor country, and raise growth permanently. d. increase growth more for a rich country than for a poor country, but raise growth temporarily.
One problem with using monetary policy to address "bubbles" in asset markets is that:
A. the Federal Reserve is better than financial-market professionals at identifying bubbles. B. the Federal Reserve is not interested in stabilizing output. C. reducing the real interest rate to deal with the bubble could lead to inflation. D. monetary policy is not a very good tool for addressing the problem of inappropriately high asset prices.
Monetary policy is most likely to result in inflation when the aggregate supply curve is
A. Horizontal and the Fed lowers the reserve ratio. B. Horizontal and the Fed sells securities. C. Vertical and the Fed raises the reserve requirement. D. Vertical and the Fed lowers the discount rate.
A firm carries out price discrimination when it charges
a. a lower price to consumers whose demand is more elastic. b. the same price to all of their consumers. c. a higher price to consumers whose demand is more elastic. d. a higher price when their marginal cost is lower.