When we calculate the marginal physical product of labor, we assume
a. all resources increase proportionately with the quantity of labor
b. all other resources are held constant (are unchanging)
c. output is fixed (unchanging)
d. the wage rate is fixed (unchanging)
e. the prices of all resources used in production are fixed (unchanging)
B
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A situation where a member of Congress votes to approve a bill in exchange for favorable votes from other members on other bills is called
A) logrolling. B) special interest legislation. C) regulatory capture. D) rent seeking.
The term "creative destruction" refers to
A) the process by which immigrants build a new life in their country of destination. B) the process by which new jobs are created and old ones destroyed. C) the effects of population growth on the environment. D) All of the above are correct.
On average over the last century, the U.S. population has grown three times as fast as the U.S. real GDP.
Answer the following statement true (T) or false (F)
If a positive externality exists in the provision of education when education is provided in a perfectly competitive market without government intervention, at the market equilibrium level of education:
A. the marginal social benefit of education equals the marginal social cost. B. additional net gains to society are possible by raising the level of education. C. additional net gains to society are not possible by either increasing or decreasing the level of education. D. additional net gains to society are possible by reducing the level of education.