Sam Lewis owns a firm in New York City's garment district. If Sam keeps adding workers to use the same number of sewing machines, eventually the workplace will become so crowded that workers will get in each other's way. At this point
A) Sam should begin using a division of labor in his business.
B) Sam's business will be in violation of safety rules that have been established by the New York City government.
C) the marginal product of labor in Sam's business would be negative and his total output would decrease.
D) Sam should encourage his workers to share their sewing machines.
C
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Does the quantity theory correctly predict the effects of money growth on inflation?
What will be an ideal response?
When people smoke cigarettes, their friends and family members may become sick. This affects GDP by
A. reducing GDP by the amount of medical care needed. B. reducing GDP by the cost of the cigarettes purchased. C. increasing GDP by the cost of the medical care and the cost of the cigarettes purchased. D. decreasing GDP by the cost of the medical care and increasing GDP by the cost of the cigarettes purchased.
Which of the following is correct regarding the discount rate?
a. It is the interest rate that commercial banks charge their most creditworthy customers. b. It is the interest rate that thrift institutions charge for home mortgages c. It is the interest rate at which depository institutions can borrow from the Federal Reserve. d. It is the interest rate set in the market for U.S. Treasury Bills. e. It is the prime interest rate.
In economics, the demand for a good refers to the amount of the good people:
a. would like to have if the good were free. b. are willing to buy at various prices. c. need to achieve a minimum standard of living. d. will buy at alternative income levels.