The table below shows how the output of surfboards varies in a small factory with the number of workers used per day. Based on these data, the marginal product of workers in the factory
a. increases steadily as more workers are employed.
b. will be the same, no matter how many workers are employed.
c. is at a maximum when 5 workers are employed.
d. will start to decline when a third worker is employed.
d. will start to decline when a third worker is employed.
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The pursuit of profit will encourage firms to
a. produce efficiently and keep their costs low. b. produce goods and services that consumers value highly relative to costs. c. discover and develop better products and lower-cost production methods. d. All of the above are correct.
When the optimal quantity of consumption is zero for a given good:
A. changing social norms is often the best solution. B. a ban is often the best solution. C. privatizing the good is often the best solution. D. government provision of the good is often the best solution.
Briefly explain why perfect capital mobility with fixed exchange rates limits the effectiveness of the use of contractionary monetary policy to influence interest rates or the domestic economy.
What will be an ideal response?
If the length of time workers are eligible to receive unemployment insurance payments doubles?, then the unemployment rate will
What will be an ideal response?