Assume that you start by hiring one worker at a time. Each time you hire an additional worker the average productivity remains the same
What does this imply about the marginal productivity of each worker that you hire? What will the marginal productivity function look like when graphed?
The only way for the average productivity of labor to change is if the marginal productivity of labor changes. Since the average productivity of labor has remained constant each time an additional worker is hired this implies that the marginal productivity of labor is constant. It will graph as a horizontal line.
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Sovereign debt crises are triggered ________
A) by innovations in subprime real estate markets B) when a country's debt-to-GDP ratio becomes excessively high C) when austerity measures cause a sharp fall in the supply of government bonds D) by the adoption of a common currency, such as the euro
On the graph above, an increase in government spending, with no change in taxes, is likely to move the economy from point 1 to point ________
A) 8 B) 6 C) 3 D) 5
The longest and most severe recession in the United States since 1925 began in:
A. 1929. B. 1957. C. 1945. D. 1982.
If demand decreases and supply increases, which of the following is correct? Question 24 options:
A. The equilibrium price falls but the impact on the equilibrium quantity is ambiguous. B. The equilibrium price rises but the impact on the equilibrium quantity is ambiguous. C. The equilibrium quantity increases but the impact on the equilibrium price is ambiguous. D. The equilibrium quantity decreases but the impact on the equilibrium price is ambiguous. E. The equilibrium price falls and the equilibrium quantity decreases.