A factory increases its output by assigning workers to specific tasks, thus reducing the average cost. This is a situation of economies of scale
a. True
b. False
Indicate whether the statement is true or false
True
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Unlike monetary policy, fiscal policy does not experience policy lags
Indicate whether the statement is true or false
Discuss why the empirical support for PPP and the law of one price is weak in recent data
What will be an ideal response?
A monopolist can earn an economic profit only when:
a. marginal cost equals marginal revenue. b. marginal cost equals price. c. average total cost is less than price. d. all of these.
The marginal product of labor is the
a. additional output produced when one more worker is hired b. amount of output associated with labor inputs c. maximum amount of output produced by a given set of inputs d. maximum profit "produced" by selling a firm's output e. additional cost associated with an additional unit of labor