What is the marginal revenue product of labor (MRP)? What shape does the MRP curve have? Why?
What will be an ideal response?
Marginal revenue product of labor is the marginal physical product of labor times marginal revenue of selling the good produced. It gives the additional revenue from hiring one more unit of labor. The curve slopes down because of the law of diminishing marginal product.
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What gives money value under a fiat system?
A) Fiat money is also a commodity. B) The supply of fiat money is controlled by the government. C) Fiat money is backed by gold. D) Fiat money is the same as Treasury bonds.
Suppose the economy's production function is Y = AK0.3N0.7. Suppose K = 200, N = 2000, and A = 1. Calculate the marginal product of capital
A) 1.0 B) 1.5 C) 2.0 D) 2.5
The federal debt is a stock variable that measures the net accumulation of prior federal deficits
a. True b. False Indicate whether the statement is true or false
The chair of the Board of Governors of the Fed is appointed by the president
a. True b. False Indicate whether the statement is true or false