If your income rises by one percent and, as a result, you buy more steak, then steak is a(n)
A. inferior good.
B. substitute.
C. normal good.
D. complement.
Answer: C
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Marginal revenue product of labor for a competitive seller is
A) equal to the marginal product of labor multiplied by the output price. B) the marginal revenue of the product multiplied by the output price. C) the change in total product from hiring one more worker. D) the output price multiplied by the quantity sold.
Production functions only apply to advanced economies
Indicate whether the statement is true or false
During the bureaucratic bargaining process, if the legislature tries to counteroffer by saying it wants less output at a given price, the bureau's can employ the strategy of _____
a. saying no b. telling the legislature that reducing the output would endanger lives c. telling the legislature that at the lower output, the price per unit will be much higher d. making a counter-offer of more output at a lower price
The long-run trend in business activity is
A. upward. B. downward. C. constant. D. such that it cannot be described as a trend.