If the marginal product of labor is greater than the average product of labor, then the
A. marginal product must be increasing.
B. marginal product must be decreasing.
C. average product must be increasing.
D. average product must be decreasing.
Answer: C
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Why would a firm knowingly hire lazy employees?
A) Lazy employees have positive marginal revenue product. B) Lazy employees have successfully sued firms in the past. C) The Americans with Disabilities Act mandates that laziness be considered a disability. D) Lazy employees make hard-working employees look good.
If general tax revenues were used to subsidize production of toothpicks, the government's actions would have
a. widespread benefits and costs b. widespread costs and concentrated benefits c. concentrated benefits and costs d. widespread benefits and concentrated costs e. widespread benefits and either widespread or concentrated costs
Implicit costs are:
a. the opportunity costs of using resources owned by the entrepreneur in his/her own business. b. payments the business owner must make on borrowed funds. c. costs which vary as the level of output varies. d. those payments the business owner makes in cash. e. the payments the business owner makes for public relations, such as donations to charity.
A change in tax rates ________ affect individual's behavior regarding consumption and saving if the change is permanent.
A. will not B. will definitely C. will negatively D. is likely to