When the average product is at its maximum,
A) the marginal product is increasing as output increases.
B) the marginal product is negative.
C) it is equal to the marginal product.
D) total product is also at its maximum.
E) total product is at its minimum.
C
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What makes advising on mergers and acquisitions particularly profitable for investment banks relative to other services that they provide?
What will be an ideal response?
The real wealth effect explains that higher prices
a. make people worse off by reducing the value of their wealth, leading them to save more and spend less b. make people worse off by reducing the value of their wealth, leading them to save less and spend more c. make people better off by increasing the value of their wealth, leading them to save less and spend more d. increase borrowing, leading to higher interest rates and less investment e. make domestic goods relatively more expensive, increasing the demand for domestic goods and decreasing the demand for foreign goods
Why do people demand money balances (i.e., hold currency and checking account balances) as a way of holding their wealth, rather than, financial investments?
a. Some amount of money is demanded for everyday market transactions like parking fees, lunch, and buying groceries. b. Money balances generally earn a higher return than other financial investments. c. Holding money balances serves as a way of protecting one's assets from the effects of inflation. d. People demand money balances to increase money supply in the economy.
Suppose there was a substantial increase in political instability in the rest of the world. What would be the effects on the U.S. current account? Explain
What will be an ideal response?