On a 100-acre farm, a farmer is able to produce 3,000 bushels of wheat when he hires 2 workers. He is able to produce 4,400 bushels of wheat when he hires 3 workers. Which of the following possibilities is consistent with the property of diminishing marginal product?
a. The farmer is able to produce 5,600 bushels of wheat when he hires 4 workers.
b. The farmer is able to produce 5,800 bushels of wheat when he hires 4 workers.
c. The farmer is able to produce 6,000 bushels of wheat when he hires 4 workers.
d. Any of the above could be correct.
a
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A small open economy would typically enjoy a higher trade balance if, in the domestic economy, ________
A) autonomous consumption expenditures decrease B) taxes go up C) government spending decreases D) all of the above E) none of the above
The CPI is a measure of the:
A. rate of inflation. B. real wage. C. price of a specific good or service. D. average level of prices relative to prices in the base year.
Universal banks are:
A. firms that engage a wide array of financial and non-financial activities. B. firms that engage in banking services across many countries. C. banks that make direct investment in non-financial firms. D. multinational corporations that own U.S. banks.
At an output of 10, ATC is $9 and price is $9. At an output of 11, ATC is $9 and price is $9. MC = MR at an output of 10.5. At that output the firm will
A. take a loss. B. break-even. C. make a profit.