If the marginal revenue product of the fifth worker hired by a firm is $15 and the price of the last unit of output produced is $5, then the marginal product of the fifth worker is
a. 15 units of output if the product market is perfectly competitive
b. 3 units of output if the product market is perfectly competitive
c. 45 units of output if the product market is perfectly competitive
d. 5 units of output if the product producer is a price searcher
e. 15 units of output if the product producer is a price searcher
B
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Adam Smith believed that
A. people should never buy anything if they can make it themselves. B. what makes sense in the conduct of a private family's economic endeavors also makes sense in those of a nation. C. trading with other nations promotes full employment. D. a nation will gain if its citizens trade among themselves, but it will probably lose if it trades with other nations.
The aggregate supply curve (short run) is upsloping because:
A. wages and other resource prices match changes in the price level. B. the price level is flexible upward but inflexible downward. C. per-unit production costs rise as the economy moves toward and beyond its full- employment real output. D. wages and other resource prices are flexible upward but inflexible downward.
Dividing the change in quantity on the Y-axis by the change in quantity on the X-axis calculates the slope of a line.
Answer the following statement true (T) or false (F)
Refer to the Article Summary. Labor productivity in the UK was well below the productivity in five of the other G7 nations, only faring better than Japan.. Labor productivity is important for an economy because an increase in labor productivity
A) will increase output and decrease wages in the long run. B) will increase the labor force participation rate. C) will create short-run, but not long-run, economic growth. D) allows the average consumer to increase consumption.