When the marginal product of labor rises
A) the marginal cost of production will exceed the average total cost.
B) the marginal cost of production also rises.
C) the marginal cost of production falls.
D) the average total cost of production also rises.
Answer: C
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The above table gives data for the nation of South Hampton. There are no imports into or exports from South Hampton. The equilibrium level of real GDP is
A) $700 billion. B) $400 billion. C) $500 billion. D) $600 billion. E) $800 billion.
The base year matters for the computation of real GDP because
A) otherwise we cannot compute growth rates. B) relative prices can change over time. C) it allows an international comparison of GDP. D) it establishes a target for macroeconomic policy.
The difference between sensitivity analysis and scenario analysis is
A) sensitivity analysis is a method for evaluating risk while scenario analysis is not. B) sensitivity analysis is based on regression analysis while scenario analysis is not. C) sensitivity analysis examines the impact on the overall results of a change in one variable while scenario analysis examines the impacts on overall results of changes in several variables at the same time. D) None of the above
A market basket:
A. is a tool devised to track how changing prices affect consumers. B. includes all the goods and services produced in an economy. C. includes all the goods and services consumed in an economy, including imports. D. includes all the goods and services consumed in an economy, including net exports.