Ten cases of spring water are sold for $6 each, and the marginal product of the last unit of labor is 5 . If the price of a case increases from $6 to $8, then the marginal revenue product of the last unit of labor would
a. decrease by $10
b. increase by $40
c. decrease by $30
d. increase by $10
e. not change
D
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If price is less than the average variable cost, firms that seek to maximize profit should shut down
a. True b. False Indicate whether the statement is true or false
Per capita real GDP is:
a. equivalent to the real GDP level. b. a measure of the value of output produced and available to an average person. c. higher in developing countries than in developed countries. d. a measure of an economy's income distribution. e. a measure of the GDP per country.
Economists widely agree that the Consumer Price Index (CPI) understates the true U.S. inflation rate
a. True b. False
What is the full-employment output level?
a. The output level that results when the loanable funds market clears b. The output level that results when the returns to labor are zero c. The output level that results when factories are completely full d. The output level that results when the labor market clears e. The output level that would occur if the output level was positive.