Which of the following is correct?
A. When total product is rising, both average product and marginal product must also be
rising.
B. When marginal product is falling, total product must be falling.
C. When marginal product is falling, average product must also be falling.
D. Marginal product rises faster than average product and also falls faster than average
product.
Answer: D
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If the value of the spending multiplier is greater than 1, then an increase in investment will shift the aggregate demand curve to the left
a. True b. False Indicate whether the statement is true or false
A Detroit business advertises, "The more we sell, the lower the price, and the lower the price, the more we sell." This firm is experiencing
a. decreasing returns to scale. b. constant returns to scale. c. increasing returns to scale. d. abnormal demand patterns.
Explain why it makes a difference if consumers consider a tax cut temporary rather than permanent. What does this explanation tell us about the importance of government credibility? Put this in the context of the 2008 and 2009 tax cuts favored by President Bush and President Obama.
What will be an ideal response?
For a worker to be potentially available, he or she must
A) know about the jobs available at a particular firm. B) be in the relevant geographic market and be willing to work for minimum wage. C) have most of the skills required by the firm only. D) have the skills required by the firm and be in the relevant geographic market.