Marginal revenue product measures the
A. increase in total revenue resulting from the production of one more unit of a product.
B. increase in total resource cost resulting from the hire of one extra unit of a resource.
C. amount by which the extra production of one more worker increases a firm's total revenue.
D. decline in product price that a firm must accept to sell the extra output of one more worker.
Answer: C
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The formula is the
A) actual change in the money supply. B) discount rate. C) potential money multiplier. D) federal funds rate.
In a perfectly competitive market,
A. all firms produce and sell a standardized or undifferentiated product. B. firms are price-setters. C. the output sold by a particular firm may be quite different from the output sold by the other firms in the market. D. it is difficult for new firms to enter the market due to barriers to entry.
Suppose that in Southlandia, frictional unemployment is 2%, structural unemployment is 3%, and cyclical unemployment is 4%. What is the natural rate of unemployment in Southlandia?
a) 2% b) 3% c) 5% d) 9%
What is enacted when discontented sellers, feeling that prices are too low, appeal to legislators to keep prices from falling?
A. Rent controls B. Price ceilings C. Price floors D. Subsidies