The marginal physical product of labor is
A) the output of the firm divided by the number of workers.
B) the change in total revenues resulting from the addition of one more worker, while increasing one other factor of production.
C) the change in output resulting from the addition of one more worker, holding other factors of production constant.
D) the change in output resulting from the addition of one more worker, adjusting the level of the capital stock accordingly.
C
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Which of the following is an alternative measure of exchange rate proposed by The Economist magazine?
A) The midcap index B) The Consumer Price Index C) The Big Mac Index D) The GDP deflator
Suppose that, instead of taking this test, you could either have worked and earned income or partied and had a pleasurable time. Your opportunity cost of taking the test is the
A) forgone work. B) forgone party. C) forgone working and partying. D) forgone working or partying, depending on which was your next best choice. E) test because you are taking it.
If fiscal stimulus creates a large budget ________, then in the long run economic growth ________
A) deficit; decreases B) surplus; increases C) deficit; increases D) surplus; decreases E) None of the above answers is correct. The figure above shows a nation's aggregate demand curve, aggregate supply curve, and potential GDP.
Which of the following is not among the first steps the textbook recommends be taken to reduce negative externalities?
A) Adjudication B) More scientific research C) Negotiation D) The cultivation of civic virtues