One reason why, in the short run, the marginal product of labor might increase initially as more workers are hired is that
A) the first workers hired get to use the best equipment.
B) specialization allows a worker to focus on one task, thereby increasing her proficiency at that task.
C) the best workers are hired first and later hires are not as skillful.
D) beyond some point, a firm has hired too many workers.
Answer: B
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Life-cycle saving is saving:
A. to pay life-insurance premiums. B. for protection against unexpected setbacks, such as the loss of a job or a medical emergency. C. for the purpose of leaving an inheritance. D. to meet long-term objectives, such as retirement, college attendance, or the purchase of a home.
If there are external costs of production not accounted for, then marginal
A. cost is less than marginal social cost. B. cost equals marginal social cost. C. social cost is zero. D. cost is greater than marginal social cost.
Ice cream can be frozen. In the short run the magnitude of the own price elasticity of demand for ice cream:
A) is higher than in the long run. B) is lower than in the short run. C) is the same as in the long run. D) does not depend on the fact that ice cream can be frozen.
The income that people receive is called:
a. national income. b. personal income. c. disposable personal income. d. transfer payments.