What happens to the marginal product (MP) of labor when the market price of the good produced increases?
a. Increases proportional to price.
b. Decreases proportional to price.
c. Stays the same.
d. Falls because quantity demanded falls.
e. Rises because quantity demanded falls.
c
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By not taking into account the possibility of consumer substitution, the CPI
a. understates the cost of living. b. overstates the cost of living. c. may overstate or understate the cost of living, depending on how quickly prices rise. d. may overstate or understate the cost of living, regardless of how quickly prices rise.
Which of the following will result in an increased price of milk?
A) A shift to the right of the supply curve for milk. B) A shift to the right of the demand curve for milk. C) An increase in the number of milk suppliers. D) A decrease in the number of milk buyers.
Why might Congress actually prefer the higher rate of inflation that might result from deficit spending to higher taxes and/or a cut in government spending?
What will be an ideal response?
Primarily through land use controls and property tax policy, which of the following branches of government has the largest influence on real estate values?
A. Local government B. State government C. National government D. Foreign government