The following is a hypothetical short?run production function: Hours of Total Marginal Labor Output Product 0 ___ ___ 1 100 100 2 ___ 80 3 240 ___ Refer to Scenario 1. What is the total output when 2 hours of labor are employed?
A. 180
B. 170
C. 150
D. 140
Answer: A. 180
Explanation:
Total output when 1 hour labor employed = 100
Marginal output of 2nd hour labor = 80
So, Total output when 2 hours labour employed = 100 + 80 = 180
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A system of economic organization in which the ownership and control of productive capital assets rests with the state and in which resources are allocated through central planning and political decision making is called
a. socialism. b. a market economy. c. a corporate economy. d. capitalism.
According to William Easterly, a former World Bank Economist, the World Bank's role in development is to:
A. increase the cost of education in a country. B. hold governments responsible for creating the proper economic environment C. help governments increase inflation rates in a country. D. allow countries to tax their exports.
Calculate the real interest rate if the nominal interest rate is 8%, the expected inflation rate is 4%, and the inflation rate is 5%.
What will be an ideal response?
Refer to Table 4-4. Suppose that the quantity of labor demanded decreases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $9.50; Q = 380,000 B) W = $10.00; Q = 390,000 C) W = $8.00; Q = 350,000 D) W = $8.50; Q = 340,000