If the marginal product of labor equals the average product of labor, then the
A. marginal product is still increasing.
B. average product is maximized.
C. average product is still increasing.
D. marginal product is maximized.
Answer: B
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Government production accounts for about half of all GDP in the United States.
Answer the following statement true (T) or false (F)
For open economies,
A) S = I. B) S = I + CA. C) S = I - CA. D) S > I + CA. E) S < I + CA.
Germany has an absolute advantage in the production of which product?
A market has four individuals, each considering buying a grill for his backyard. Assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.If the market price of grills increases from $310 to $350, given the scenario described:
A. Collin and Butch would experience a decrease in consumer surplus, but Abe's consumer surplus would rise. B. total consumer surplus would fall by $120. C. total consumer surplus would fall by $90. D. Collin would experience a decrease in consumer surplus, but Abe and Butch would experience a rise in consumer surplus.