The marginal product of labor is the extra amount of output a firm can generate by adding one more hour of labor (or one more worker).
Answer the following statement true (T) or false (F)
True
The marginal product is the extra amount of output a firm can generate by adding one more hour of labor (or one more worker).
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Which of the following best describes the idea of a political business cycle?
a. Politicians have a bias to cut taxes and increase government spending. b. Special interests result in alternating federal deficits. c. Politicians will use fiscal and monetary policy to cause output, real incomes, and employment to be rising prior to elections. d. Good intentions of politicians influence the business cycle.
Which of the following is characteristic of the corporate form of ownership?
a. unlimited liability b. easy transferability of ownership rights c. no divisible ownership rights d. absence of the principal-agent problem
Which of the following statements is true?
A) A change in sales should have more impact on current investment if it is expected to be permanent rather than temporary. B) On a percentage basis, investment is more volatile than consumption. C) In terms of dollars, investment and consumption are about equally volatile. D) all of the above E) none of the above
A change in the price of a good causes
A) an increase in supply. B) a decrease in supply. C) an increase in demand and a decrease in supply. D) a change in quantity supplied.