Labor (# of employees)Total Output0011025031104160520062307255827592901030011305Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. Diminishing marginal product sets in with the:
A. third worker.
B. fifth worker.
C. fourth worker.
D. second worker.
Answer: C
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Moving along the aggregate supply curve,
A) the quantity of capital used increases. B) technology advances. C) the stock of human capital increases. D) only the price level changes. E) the real wage rate is constant.
By producing at the point where MR = MC, the firm:
a. is guaranteed a profit. b. will earn a profit of zero. c. will lose money. d. profit is maximized. e. output.
A regressive tax is one in which the average tax rate falls as income rises
a. True b. False Indicate whether the statement is true or false
Exhibit 5-1 Demand curve
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If demand price elasticity is 2, consumers would:
A. buy twice as much of the product in response to a 10 percent decrease in prie. B. require a 2 percent drop in price to increase their purchases by 1 percent. C. buy 2 percent more of the product in response to a 1 percent decrease in price. D. buy twice as much of the product in response to a 1 percent decrease in price.