When 5 units of labor are employed, total product is 9 units; when 6 units of labor are employed, total product is 11 units of output. If the price of output is $5 per unit, what is the marginal revenue product of the 6th unit of labor?
A) $10
B) $5
C) $15
D) $55
Answer: A
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Currently, China and India are growing much faster than the United States and Western Europe. This high rate of growth will eventually and naturally slow down in the future because:
a. China and India will exhaust their natural resources. b. Actually, there is no economic reason for China and India's growth rates to fall in the future. c. Current account surpluses will eventually cause capital flight from these nations which will lower the value of their currency and reduce their growth rates. d. Consumption will increase and crowd out investment spending. e. Diminishing returns will eventually set in.
Monetary policy directed at expanding GDP growth would include the following?
A. Selling bonds and increasing the discount rate B. Buying bonds and increasing the discount rate C. Decreasing the discount rate and increasing the reserve requirement D. Decreasing the discount rate and buying bonds
Among economists, a basic economic policy debate regarding markets is:
A. whether markets ought to have prices. B. what data is available for a model given institutions. C. whether to let economic forces exist. D. what coordinating mechanism will best solve a specific problem.
Which of the following does not constitute a household consumption item?
a. A pair of jeans b. A bottle of Beck's beer c. A haircut d. A steam turbine electric generator e. A packet of breakfast cereal