If we assume that labor is the only variable input, the slope of the total product curve in the short run
A. measures the average product of labor.
B. has no economic significance.
C. measures the marginal product of labor.
D. measures both the marginal and average product at all points on the total product curve.
Answer: C
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Refer to the payoff matrix below. If each cell has a probability of occurrence of 0.25, what are Best Treats' expected profits?
Healthy Snacks and Best Treats are two firms competing in the health food snacks market. Both are considering introducing a new health food snack made purely of dried power fruits. The payoff matrix shows their net economic profit in millions for the different strategies.
A) $3 B) $4.5 C) $2 D) $3.5
The government's policy of reducing payments for physicians' services has generated a relative
A) increase in the number of physicians in the program. B) reduction in the number of physicians in the program. C) reduction in the demand for medical services. D) increase in the income of the physicians remaining in the program.
When asked to reveal their true preferences people
A. always tell the truth. B. never tell the truth. C. sometimes tell the truth. D. generally don't know what preferences are.
With cost-push inflation in the short run, there will be:
A. An increase in real GDP B. A leftward shift in the aggregate demand curve C. A decrease real GDP D. A decrease in unemployment