Which of the following illustrates how diminishing marginal product can occur?
a. Once Sue hired Lynne to handle accounts receivable and Michael to handle accounts payable, she was able to keep up with payroll, taxes, and other administrative tasks.
b. Scheduling additional stylists at the salon on Saturday caused mix-ups and delays because there were still the same number of washing and cutting stations available.
c. When their team manager was on vacation, Xan and Martine stepped in to lead staff meetings and make sure updated sales figures were reported to management.
d. Kurt prefers to work alone, so he runs a one-man embroidery shop, even though it means long hours and learning the hard way to keep up with payments and billing.
b. Scheduling additional stylists at the salon on Saturday caused mix-ups and delays because there were still the same number of washing and cutting stations available.
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Explain how the "new growth theory" treats technology differently from the way economists used to treat technology
What will be an ideal response?
Some economists argue that Okun's Law overstates the cost of cyclical unemployment because
A) the cost of retraining workers must be offset against the loss in output that occurs when workers are unemployed. B) if efficiency wages prevail, and workers are paid their real wage, already employed workers will reduce their effort, reducing output. C) it ignores the fact that leisure increases during a recession. D) it ignores the loss of government revenue and additional government expenditures that occur when unemployment rises.
If the marginal cost of producing the fifth unit of output is higher than the marginal cost of producing the fourth unit of output, then at five units of output, average total cost must be rising
a. True b. False Indicate whether the statement is true or false
Suppose in the year 2000 Ken earned $60,000 per year. If the CPI in the year 2000 was 172.2 and in 2015 was 236.7, what is the minimum level of income Ken would have needed to earn in 2015 to have maintained the same standard of living he had in 2000?
a. $80,479 b. $81,237 c. $82,474 d. $83,623