In the Ricardian model, the marginal product of labor:
a. first rises, then falls, as more labor is employed to produce a good.
b. first falls, then rises, as more labor is employed to produce a good.
c. continuously falls, as more labor is employed to produce a good.
d. does not change, as more labor is employed to produce a good.
Answer: d. does not change, as more labor is employed to produce a good.
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If total spending rises from one year to the next, then the economy must be producing a larger output of goods and services
a. True b. False Indicate whether the statement is true or false
The government buts new weapons systems. The manufacturers of weapons pay their employees. The employees spend this money on goods and services. The firms from which the employees buy the goods and services pay their employees. This sequence of events illustrates
a) the accelerator effect. b) the multiplier effect. c) the chain effect. d) the bandwagon effect.
How do ceteris paribus and hypothesis relate in the field of economics?
a. Economists use ceteris paribus to declare that a hypothesis is not constant enough to be a theory. b. Economists use ceteris paribus to declare that a hypothesis has been accepted as a theory. c. Economists use ceteris paribus to test a hypothesis only if the two variables are intangible. d. Economists use ceteris paribus to test a hypothesis with two variables while keeping other variables constant.
Refer to the table below. What is the price that yields the maximum total revenue?
 A. $2 B. $3 C. $4 D. $5