In the short run, the additional output that results from hiring an additional unit of a variable input is the
A. average product.
B. marginal cost.
C. marginal product.
D. average variable cost.
Answer: C
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If the nominal exchange rate between the U.S. dollar and the Thai baht (baht per dollar) is lower than the relative purchasing power between the two countries, which of the following would be true?
A) Purchasing power parity predicts that the value of the dollar will fall as traders take advantage of profit opportunities. B) Purchasing power parity predicts that the baht is undervalued as traders take advantage of profit opportunities. C) There are opportunities for profit by purchasing goods in the United States and selling them in Thailand. D) There are no opportunities for profit by purchasing goods in one country and selling them in the other.
If California decides to pay for public radio by taxing people based on the number of hours they listen based on voluntary self-reporting, then which of the following is likely to occur as a consequence?
a. Many individuals will overstate the number of hours they listen to public radio to government in order to receive a higher tax bill. b. People who report listening quite a few hours and have a high income will pay a larger proportion of their income in public radio tax than people who report the same number of hours and have a low income. c. Many individuals will understate the number of hours they listen to public radio to government in order to reduce their tax bill. d. Many individuals will overstate the number of hours they listen to public radio to government in order to receive a lower tax bill.
You borrow $20,000 at an interest rate of 6% to open Candy Dan's, a gourmet sweet shop. If the return on your investment is ________, then you will earn an economic loss.
A. less than 6% B. exactly 6% C. greater than 6% D. It is indeterminate from the given information.
Functional finance is that part of the deficit that is attributable to
A. the exponential increase in interest rates. B. spending programs or tax cuts passed to stimulate an economy in recession. C. fighting the war on terror. D. specific programs (like Medicare).