USX, a steel company, reduced the number of man-hours required to produce a ton of steel from 10.8 in 1982 to 3.8 in 1990, thereby eliminating 55,000 jobs. Technically, this rise in productivity means the
a. marginal product of labor increased.
b. average product of labor increased.
c. average product of capital fell.
d. marginal product of capital fell.
b
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The largest category of financial intermediary is the
A) commercial banks. B) savings-and-loans. C) insurance companies. D) mutual funds.
In a perfectly competitive industry, assume there is a permanent increase in demand for a product. The process of transition to a new long-run equilibrium will include:
a. the exit of firms. b. temporarily lower production costs. c. both a and b. d. neither a nor b.
Assume that a single insurance plan applies to 2,000 low-risk people and 1,000 high-risk people opting for insurance coverage. If the average claim submitted by low-risk people is $100 while that submitted by high-risk people was $1,000 . the insurer would break even by setting a premium of:
a. $250. b. $400. c. $200. d. $500.
A utility possibilities frontier need not incorporate the utility of every individual.
A. True B. False C. Uncertain