A farm can produce 10,000 bushels of wheat per year with 5 workers and 13,000 bushels with 6 workers. The marginal product of the sixth worker for this farm is:
a. 10,000 bushels.
b. 3,000 bushels.
c. 500 bushels.
d. 23,000 bushels.
b
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The "double coincidence of wants" is
A) what is needed to use money. B) eliminated with the use of money. C) money's role as a unit of account. D) how value is stored when we transact with money. E) eliminated when we barter instead of using money.
Suppose Motorland's government imposes a tax of $1.50 per gallon of gasoline sold. With the tax, when the market is in equilibrium, the deadweight loss is
A) zero. B) $37,500 per month. C) $150,000 per month. D) $75,000 per month.
Explain, in detail, how the adjustment to macroeconomic equilibrium occurs when spending is less than production. Be sure to discuss how inventories play a crucial role in the adjustment process
State what happens to GDP and employment during the adjustment process.
The growth rates of actual and potential GDP
A. are similar in both the short and long run. B. are similar in the short run but not the long run. C. are similar in the long run but not the short run. D. are different in both the short and long run.