One reason why, in the short run, the marginal product of labor might increase initially as more workers are hired is that
A) beyond some point, a firm has hired too many workers.
B) specialization allows a worker to focus on one task, thereby increasing her proficiency at that task.
C) the best workers are hired first and later hires are not as skillful.
D) the first workers hired get to use the best equipment.
B
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Universities sometimes hire professors who are poor teachers but have good research skills because
a. research ability is more important in education than teaching ability b. students don't listen to professors anyway c. teaching can be learned; research ability cannot d. research skills are easier to measure than teaching skills e. research skills are difficult to measure
A price above equilibrium always yields a surplus
a. True b. False Indicate whether the statement is true or false
A firm produces output according to the production function, q = L4/3K1/2 and faces input prices equal to w = $20 and r = $80. What is the minimum cost of producing 1140 units of output?
A) Cost = $780 B) Cost = $694 C) Cost = $2,071 D) Not enough information is given to answer this problem.
A factor that might have contributed to the weakening of the U.S. economy in 2007-2009 was
A. increases by the Federal Reserve in its target short-term interest rate. B. the unexpected return to the gold standard. C. rapid growth of the money stock. D. rising levels of federal government spending.