The marginal physical product of labor increases when more laborers are added to production, although it eventually falls as laborers are continually added. The explanation for the initial increase is the
a. low wage rates at the beginning of production
b. more skilled labor at the beginning of production
c. marginal revenue product is less than the marginal physical product
d. marginal revenue product decreases at every production level
e. gains from the division of labor and specialization
E
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Microeconomics examines the
A. total household expenditures. B. decision making undertaken by individual households. C. aggregate business spending. D. behavior of the economy as a whole.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases. B. initially increases, then decreases. C. decreases. D. remains constant.
National income
A. will always equal personal income. B. is always less than personal income. C. is always greater than personal income. D. may be greater than or less than personal income.
A decrease in the average price level of an economy leads to a decrease in: a. the purchasing power of wealth. b. interest rates
c. aggregate expenditure. d. government spending.