As output rises,
A. both marginal revenue product and marginal physical product rise.
B. both marginal revenue product and marginal physical product fall.
C. marginal revenue product rises and marginal physical product falls.
D. marginal revenue product rises and marginal physical product rises.
B. both marginal revenue product and marginal physical product fall.
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Which of the following will not cause the labor demand curve to shift to the right?
A) a technological improvement that increases labor productivity B) an increase in human capital in the labor force C) an increase in the market wage rate D) an increase in the price of the firm's product
When a permanent negative supply shock hits the economy ________
A) in the long-run, output is permanently lowered whether the central bank reacts or not B) inflation decreases in the short-run C) there is no long-run effect on inflation whether the central bank reacts or not D) all of the above E) none of the above
When the economy is operating at the equilibrium level of GDP, we know that
A) total planned real consumption expenditures equal real GDP. B) planned real investment spending equals real net exports of zero. C) total planned real expenditures equal real GDP. D) real net exports equal inventory changes.
Compared to those with lower incomes, families with higher incomes are more likely to be headed by a
a. person age 65 years and older. b. husband and wife team with one but not the other in the labor force. c. single-parent. d. college graduate.