If the firm hires more labor, everything else held constant, then
A) the marginal product of labor falls.
B) output decreases.
C) there is an increase in the marginal product of labor.
D) total factor productivity falls.
A
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Todd owns a truck that he values at $2,000 . Susan, who does a lot of hauling, values the truck at $6,000 . If these two are allowed to negotiate, which of the following will most likely occur?
a. Todd will sell the truck for $1,500. b. Susan will buy the truck for $7,000. c. The truck will be sold at a price greater than $2,000 but less than $6,000, and both parties will benefit. d. Susan will benefit more than Todd if the truck is sold.
Refer to the following graphs.
Which graph depicts a perfectly competitive firm that will minimize short-run losses by producing zero output?
A. Graph I B. Graph II C. Graph III D. Graph IV
Recall the Application about the link between happiness and GDP to answer the following question(s). Comparing changes in happiness to changes in per capita income over the last 30 years, economists at Dartmouth College and Warwick University have measured levels of happiness in the United States and United Kingdom based on income levels, ethnicity, age, and gender.This Application addresses the economic concept of:
A. real versus nominal GDP. B. fluctuations in GDP. C. GDP as a measure of welfare. D. measuring a nation's national income.
Our balance of trade is part of our ________________.
Fill in the blank(s) with the appropriate word(s).