Figure 17.1 depicts a firm's marginal revenue product curve. Why does the marginal revenue product of labor decrease faster as the firm increases its use of labor by 10 hours?
A. Because the marginal product of labor decreases at an increasing rate.
B. Because the marginal product of labor decreases at a decreasing rate.
C. Because the marginal product of labor increases at an increasing rate.
D. Because the marginal product of labor increases at a decreasing rate.
Answer: A
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According to the graph shown, if the market is in equilibrium, producer surplus is:
A. $30.
B. $20.
C. $50.
D. $60.
Fluctuations in investment: a. account for almost all of the variability in gross domestic product (GDP) only during expansions. b. account for little of the variability in gross domestic product (GDP)
c. account for almost all of the variability in gross domestic product (GDP) only during recessions. d. are larger during expansions than during recessions. e. account for more of the variability in gross domestic product (GDP) than consumption.
Saving is disposable personal income spent on investment
a. True b. False Indicate whether the statement is true or false
Regulation in the labor market is not necessarily undesirable, but should be subject to the:
A. principle of comparative advantage. B. principle of increasing opportunity cost. C. cost-benefit principle. D. scarcity principle.