The marginal revenue product (MRP) is the:
a. value of the additional output that an extra unit of a resource can produce.
b. cost of hiring an additional unit of a resource.
c. extra cost of producing an additional unit of output.
d. increase in total output when an additional unit of an input is hired.
e. change in total revenue when an additional unit of a good is sold.
a
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Aggregate demand and supply curves have been widely used to analyze the performance of the macroeconomy. Figure 5-3 shows four diagrams that represent different changes in the macroeconomy. Choose the diagram that best represents the situations described in the following questions.Figure 5-3
Which graph in Figure 5-3 best represents the economic conditions of the American economy in 2001?
A. 1 B. 2 C. 3 D. 4
Which of the following is hypothesized to explain the reduction in the rate of technological progress?
A) measurement error B) the increase in the size of the service sector C) a reduction in R&D spending D) all of the above E) none of the above
Efficient financial institutions foster the flow of:
A. Saving and investment B. Spending and income C. Resources and products D. Inventions and ideas
Which of the following is a factor that determines the shape of the aggregate demand curve?
A) the real-balance effect B) the wage effect C) the nominal-balance effect D) the price level effect