Answer the following statements true (T) or false (F)
1. The production function relates outputs to inputs.
2. The marginal product is the increase in output per additional unit of input.
3. The marginal product decreases, reaches a minimum, and then rises as output increases.
4. As long as the marginal product is falling, the average product falls.
5. The average product decreases any time the marginal product is decreased.
1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. FALSE
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Refer to the table above. If the market is perfectly competitive, the equilibrium price of calculators is:
A) $2. B) $6. C) $12. D) $20.
If the unemployment rate in the economy is steady at 4 percent per year, how does the short-run Phillips curve predict that the inflation rate will be changing, if at all? What will happen if the unemployment rate now rises to 7 percent per year?
Assume there are no changes to inflation expectations. Provide an appropriate graph to support your discussion.
Consumption expenditures are a function of ________
A) the real interest rate B) disposable income C) autonomous consumption D) all of the above E) none of the above
Most redistribution is not targeted to the poor
a. True b. False