Refer to the diagram. If labor is the only variable input, the average product of labor is at a:
A. minimum at point b.
B. maximum at point b.
C. maximum at point a.
D. maximum at point c.
B. maximum at point b.
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When a firm has monopoly power, it
A) hires fewer workers because its marginal revenue lies below the demand curve. B) hires more workers because its marginal revenue lies below the demand curve. C) hires fewer workers because its marginal revenue lies above the demand curve. D) hires more workers because its marginal revenue lies above the demand curve.
Bank examiners are _____.
(A) More interested in regulating the overall money supply than the net worth of member banks. (B) Required to schedule with banks when they plan to visit. (C) Authorized to force banks to sell off investments that they consider excessively risky. (D) Only permitted to label a bank as a "problem bank" if the institution has excessive risks.
Which of the following should be used to compare the incomes of countries with huge differences in cost of living?
A) Gross national product B) Exchange rate-based measure of income per capita C) Income per working age population D) PPP-based measure of income per capita
The ________ effect refers to the change in quantity demanded for a good that results from the effect of a change in the good's price on consumer's purchasing power
A) substitution B) population C) ceteris paribus D) income