The owners will shut down a perfectly competitive firm if the price of its good falls below its minimum
A) average total cost.
B) average marginal cost.
C) average variable cost.
D) wage rate.
C
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The marginal product of labor (MPL) is given by the ________
A) labor share of income + average output per unit of labor B) labor share of income - average output per unit of labor C) labor share of income ÷ average output per unit of labor D) labor share of income × average output per unit of labor E) none of the above
Which of the following is the least likely to influence the natural rate of unemployment?
a) monopolies in the goods market b) labor unions c) payroll taxes d) unemployment insurance benefits e) monetary policy
Who serves as voting members of the Federal Open Market Committee (FOMC)?
What will be an ideal response?
What will happen to the annual rate of growth of per capita real GDP if the annual rate of population growth increases and the annual rate of growth of real GDP goes down?
A) It will increase since an increase in population means an increase in labor that translates into an increase in real GDP. B) It will increase since the annual rate of growth of real GDP does not influence the growth rate of per capita real GDP. C) It will decrease since an increase in the growth rate of population and a decrease in the growth rate of real GDP both work to decrease the growth of per capita real GDP. D) The effect will depend upon whether the rate of population growth is greater than or less than the rate of growth of real GDP.