Marginal product is:
A. the increase in total output attributable to the employment of one more worker.
B. the increase in total revenue attributable to the employment of one more worker.
C. the increase in total cost attributable to the employment of one more worker.
D. total product divided by the number of workers employed.
Answer: A
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Refer to the above table. If the price of the good produced is $8, the marginal revenue product of the 12th worker is
A) $720 B) $800 C) $5520 D) $560
The best explanation for why negative marginal product is reached at seven or more workers is that ______.
a. with seven or more workers, the shop makes more bagels than its customers want
b. six workers is the optimal staff size for a small business
c. Moe’s can only make effective use of six workers
d. Moe’s cannot make a profit with more than six workers
In the absence of government
A. the free-rider problem is more likely to occur. B. public goods are likely to be overprovided. C. market failure is less likely to occur. D. public goods are likely to be underprovided.
A basic criticism of supply-side economics is that:
A. empirical research clearly shows that incentives to work and invest vary directly with marginal tax rates. B. lower taxes will increase aggregate supply much more than they will increase aggregate demand. C. lower taxes will increase aggregate demand much more than they will increase aggregate supply. D. higher taxes will reduce incentives to work, invest, and innovate.