If average labor productivity decreases while population and the number of employed workers remain constant, then total output:
A. increases.
B. decreases.
C. may increase or decrease.
D. remains constant.
Answer: B
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Generally speaking, exchange rates are determined by
A) supply and demand. B) the International Monetary Fund. C) interest rates. D) differences in money growth rates.
What is true at the profit-maximizing quantity for a perfectly competitive firm but not for a nondiscriminating monopoly?
a. Price equals marginal cost. b. Price is greater than marginal cost. c. Marginal revenue equals marginal cost. d. Marginal revenue is less than marginal cost. e. Marginal revenue is greater than average revenue.
Demand-pull inflation may be caused by:
a) An increase in costs b) A reduction in interest rates c) A reduction in government spending d) An outward shift in aggregate supply
Figure 9.3Figure 9.3 shows the cost structure of a firm in a perfectly competitive market. The firm will stay in the market in the long run only if the market price is greater than or equal to:
A. $4.50. B. $6. C. $10. D. $15.