The marginal product of labor is the increase in total product from a
A) one unit increase in the quantity of labor, while holding the quantity of other inputs constant.
B) one unit increase in the quantity of labor, while also increasing the quantity of other inputs by one unit.
C) one dollar increase in the wage rate, while holding the price of other inputs constant.
D) one percent increase in the wage rate, while also increasing the price of other inputs by one percent.
A
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Over the past decade, the incomes of the top 1 percent have increased disproportionately higher than that of the middle class. These changes mean that the Lorenz curve moved ________ the 45 degree line and the Gini ratio has ________
A) closer to; decreased B) closer to; increased C) further away from; decreased D) further away from; increased
The principal policy-maker of the Federal Reserve is the
A) Chairman of the Federal Reserve Board of Governors. B) president of the New York Federal Reserve bank. C) president of the Washington, D.C. Federal Reserve bank. D) Comptroller of the Currency.
What is the relationship between the marginal product of labor and the value of the marginal product of labor?
With regard to international trade,
A. The production possibilities exceed the consumption possibilities. B. Some countries do not have a comparative advantage in producing anything. C. The market mechanism determines the terms of trade. D. Rich countries benefit at the expense of poor countries.