A favorable supply shock would
A) shift the production function up and decrease marginal products at every level of employment.
B) shift the production function down and decrease marginal products at every level of employment.
C) shift the production function down and increase marginal products at every level of employment.
D) shift the production function up and increase marginal products at every level of employment.
D
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Marginal revenue product is
a. the additional cost of hiring one more unit of a resource b. the additional units of output generated by hiring one more unit of a resource c. calculated by multiplying marginal revenue by the price of a resource d. the expected additional revenue generated by hiring one more unit of a resource e. calculated by multiplying marginal revenue by the marginal resource cost of a resource
Technically speaking, if price > AVC, then
a. TR > TC b. profit is positive c. TR > TVC d. profit is negative e. the firm should shut down
The ______ budget constraint shows the tradeoff between present and future consumption.
a. utility-maximizing b. time-value of money c. intertemporal choice d. inflation
Even if everyone agreed on policy priorities, there would still be trade-offs related to economic policy.
Answer the following statement true (T) or false (F)