What is the value of marginal product of labor?
What will be an ideal response?
The value of marginal product of labor is the value to the firm of hiring one more unit of labor. The value of marginal product of labor, VMP, is the change in total revenue from employing an additional unit of labor.
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The concept of economic efficiency refers to the size of the "economic pie" whereas the concept of equality refers to how the "pie" is distributed
a. True b. False Indicate whether the statement is true or false
The economy could produce at 8 units of outboard motors and 18 units of robots
A. immediately only under unusual circumstances such as war.
B. if there is economic growth over a period of years.
C. under no circumstances.
D. immediately only under unusual circumstances such as war AND if there is economic growth over a period of years.
Distinguish M1 from M2
What will be an ideal response?
Use the graph below to answer the next question.
Other things equal, an increase in the price of substitute resource would cause a
A. move from a to b on D1. B. shift from D2 to D3 assuming the substitution effect exceeds the output effect. C. move from b to a on D1. D. shift from D3 to D2 assuming the substitution effect exceeds the output effect.