As a firm hires more workers, holding capital and other factors constant, the marginal physical product of labor declines because
A) there are diseconomies of scale.
B) less efficient workers are hired as the number of workers increase.
C) workers don't perform well in teams.
D) the amount of other inputs each worker has to work with declines as the number of workers increases.
Answer: D
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In the long run, the Phillips curve is a ________ at ________
A) horizontal line; 0% inflation B) vertical line; the natural rate of unemployment C) vertical line; the expected rate of inflation D) negatively sloped line; the intersection of aggregate demand and short-run aggregate supply
Which of the following accurately describes the impact of the rule of law on a country's economic growth rate?
A) Countries where favoritism and bribery are common have stronger rates of growth. B) Countries with a strong rule of law have faster economic growth. C) Countries with a weak rule of law have faster economic growth. D) Countries that enforce property rights through lawsuits have slower economic growth.
A drop in velocity means that at any nominal GDP there is a desire to hold a ________ proportion of assets in money form, thus ________ shift in the LM curve
A) larger, a downward B) larger, an upward C) smaller, a downward D) smaller, an upward
Which of the following is not a reason for the wage differential between females and males?
a. The choice of major in college by females tends to be different than the choice by males. b. The existence of employer prejudice leads to wage differential between males and females. c. The number of males is usually greater than the number of females in the labor force. d. Females bear the primary responsibility of childbearing. e. Women accept lower wages for flexible and shorter working hours.