MRP represents what the marginal physical product is worth
a. True
b. False
Indicate whether the statement is true or false
True
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What is meant by increasing returns to scale?
What will be an ideal response?
As cities grew and markets developed, life, fire and death insurance companies emerged to manage risks and help groups of individuals during disasters
Indicate whether the statement is true or false
Suppose that Philip is the best contractor in town, and he makes $400,000 a year. Suppose that Julia Roberts is the best and highest paid actress in Hollywood, and she makes $13 million per movie. Both are the best in their respective fields of work. One reason for the significant difference in incomes has to do with the nature of the service each offers. Philip's contracting services
a. can be provided to an unlimited number of customers in a year, but Julia's work is sold to only a few individuals in a year. b. can only be provided to a limited number of customers in a year, but Julia's work is sold to millions of individuals in a year — i.e., to anyone who has the willingness and ability to pay for admission to her movies. c. can be provided to a unlimited number of customers in a year, and Julia's work is sold to millions of individuals in a year — i.e., to anyone who has the willingness and ability to pay for admission to her movies. d. can only be provided to a limited number of customers in a year, and Julia's work is sold to only a few individuals in a year.
In the aftermath of the last financial crisis, critics of monetary policy argued that it was ineffective. The Federal Reserve had moved interest rates to historic lows without a significant stimulus effect. Some economists wondered if the United States was:
a) undergoing simultaneous increases in aggregate demand and supply. b) undergoing offsetting changes in aggregate demand and supply. c) facing hyperinflation. d) in a liquidity trap.