The marginal physical product of labor for the most recent worker hired by Ajax is 286. If Ajax were to hire an additional worker we would expect the marginal physical product of labor to
A) remain at 286.
B) be below 286.
C) be above 286 by a small amount.
D) be above 286 by a large amount.
B
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The short-run average total cost, average variable cost, and marginal cost curves are all U-shaped because of
i. constant total fixed cost. ii. increasing and then decreasing marginal returns as more labor is hired. iii. economies and diseconomies of scale as the plant size increases. A) only i B) only ii C) i and iii D) ii and iii E) i, ii, and iii
To understand how the colonial economy developed, Hughes and Cain (2011) claim one must understand
(a) what motivated colonists to settle in different locations. (b) what colonists produced, how much they produced, for whom they produced and with whom they traded. (c) the legal system in which they operated. (d) all of the above.
The lack of job information for workers would be an example of which explanation for wage differentials among workers?
A. Noncompeting groups B. Compensating differences C. Market imperfections D. Principal-agent problems
The falling phase of a business cycle measured by a decrease in real GDP is called:
A) hyperinflation. B) expansion. C) recession. D) peak.