If the marginal product of labor is constant for all levels of output, then the average product of labor
A) is constant.
B) equals the marginal product of labor.
C) Both A and B above.
D) Either A or B above but not both.
C
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The FDIC is an example of:
A. risk premium. B. a Federal Reserve Bank tool. C. the Glass-Steagall Act D. deposit insurance.
Keynes believed
A. once a recession began, it would always turn into a depression. B. full employment GDP was a rare occurrence. C. the expected profit rate and the interest rate were equally important in determining the level of investment in an economy. D. inflation was a persistent tendency of the economies of his day.
Suppose we observe the following two simultaneous events in the market for beef. First, there is a decrease in the demand for beef due to changes in consumer tastes. And second, there is a reduction in beef cattle supply due to climate change. We know with certainty that these two simultaneous events will cause which of the following?
A. a decrease in the equilibrium quantity and an indeterminate change in the equilibrium price B. a decrease in the equilibrium quantity and an increase in the equilibrium price C. an increase in the equilibrium quantity and in the equilibrium price D. no change in the equilibrium quantity and a reduction in the equilibrium price
Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. 
Figure 15.5 Refer to Figure 15.5. Assume the Custom Sweater Shop has fixed costs of $500 and is a monopolistically competitive firm. If this firm is producing the profit-maximizing level of output and selling it at the profit-maximizing price, the firm's profit is
A. -$400. B. -$350. C. -$500. D. -$50.