Output in the long run is determined by which of the two following factors when an economy operates at full employment?
A. capital and supply
B. imports and exports
C. capital and labor
D. the "real" GDP and purchases
Answer: C
You might also like to view...
Sunshine's Organic Market sells organic produce. Assume that labor is the only input that varies for the firm. The store manager has determined that if she hires 5 workers, the store can sell 150 pounds of produce per day. If she hires 6 workers, the store can sell 170 pounds of produce per day. The store earns $4 for each pound of produce that it sells, and the manager pays each worker $60 per
day. Which of the following is not correct? a. For the 6th worker, the marginal product is 20 pounds of produce per day. b. For the 6th worker, the marginal revenue product is $20 per day. c. The store earns a higher profit by employing 6 workers than by employing 5 workers. d. Assuming no changes in either the daily wages paid to store workers or the price at which the store sells its produce, the firm would maximize profits by hiring a 7th worker so long as the store can increase its sales to at least 185 pounds per day.
The underground economy
a. excludes the amount of criminal activity in an economy. b. is larger for developed nations than developing nations when measured as a percent of GDP. c. includes otherwise legal transactions that go unreported or unrecorded. d. in the United States is insignificant is size when compared to the official measure of GDP.
An attempt by one oligopolist to increase its market share by cutting prices will leave competitors unaffected.
Answer the following statement true (T) or false (F)
A firm should consume physical capital until:
A) the value of the total product of physical capital equals the price of physical capital. B) the value of the average product of physical capital equals the price of physical capital. C) the value of the marginal product of physical capital equals the price of physical capital. D) the value of the marginal product of physical capital equals the value of the marginal product of labor.