Which of the following best explains why marginal product usually rises initially?
a. The first workers receive hands-on training by the shop owner.
b. The use of equipment is more effective as workers are added.
c. Fixed costs increase as workers are added.
d. Marginal costs increase as variable inputs are increased.
b. The use of equipment is more effective as workers are added.
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Assume that the supply curve for a commodity shifts to the left and the demand curve shifts to the right, both by the same degree. Then, in comparison to the initial equilibrium, the new equilibrium will be characterized by:
A) a lower price and the same quantity. B) the same price and quantity. C) a lower price and quantity. D) a higher price and the same quantity.
When resource markets are free to adjust, temporary differentials will cause
a. b, c, and e to occur b. the allocation of fewer resources to lower-paid uses c. the equalization of payments for the same resource in different uses d. no change in the allocation of resources e. the allocation of more resources to higher-paid uses
Consumer surplus is difference between the ________ a consumer would pay for a given quantity of a good and what the consumer ________ pays
a. least; actually b. least; wants c. most; actually d. most; wants
There is a side agreement to _______________ that calls for the enforcement of existing worker rights in _______________.
a. the European Union; the European nations b. the World Trade Organization; the less developed nations c. NAFTA; the South American nations d. NAFTA; Mexico, Canada, and the United States