When total product is increasing at an increasing rate, marginal product is:
A. positive and increasing.
B. positive and decreasing.
C. constant.
D. negative.
Answer: A
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Which of the following is a measure of standard of living that is not included in GDP?
a. recreation and travel b. literacy level c. medical expenses d. college tuition
Which statement is true?
A. Most American workers are members of labor unions. B. Virtually no Americans are members of labor unions. C. A rising percentage of workers are members of labor unions. D. A declining percentage of workers are members of labor unions.
The infant-industry argument is often criticized because
A. it reduces labor productivity in the short term. B. it reduces government revenues in the short term. C. it is difficult to determine which industry merits protection. D. it reduces the employment rate.
Suppose the market for bottled water is served by two oligopolists. If they reach an agreement to restrict production and charge a price above marginal cost, then:
A. neither firm will have an incentive to cheat on the agreement since it benefits them both. B. their agreement is likely to eventually collapse. C. they will charge a higher price than a monopolist would have charged. D. they will earn a larger profit than a monopolist would have earned.