When demand is perfectly elastic, marginal revenue is
A. increasing.
B. zero.
C. declining.
D. equal to price.
Answer: D
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If real GDP is $1,200 billion, the population is 60 million, and aggregate hours are 80 billion, labor productivity is
A) $6.67 an hour. B) $15.00 an hour. C) $150 an hour. D) $5.00 an hour. E) $20,000.
During periods of inflation, which function of money is most severely affected?
A) medium of exchange B) unit of account C) means of payment D) store of value
The demand for labor is downward-sloping because of
A. Falling MC. B. Rising P. C. Rising MPP. D. Diminishing returns to labor.
Suppose the exchange rate is initially set at 120 yen per dollar and increases to 140 yen per dollar. This would be expected to cause the price of Japanese goods in the U.S. economy to
A. decrease. B. change in a manner that cannot be determined without additional information. C. remain the same since domestic demand remains the same. D. increase.