The marginal revenue product of labor is the:
A. change in labor necessary to produce an additional unit of output.
B. cost of additional labor necessary to produce an additional unit of output.
C. change in output resulting from adding an additional unit of labor.
D. change in revenue resulting from adding an additional unit of labor.
Answer: D
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Engel's Law claims that
a. the percentage increase in quantity demanded for food is less than the percentage increase in income b. food is an inferior good (as economists define inferior good, of course) c. the demand for food is income elastic d. the income elasticity for food is negative e. consumers' demand for food does not increase when the price of food falls
Macroeconomics is the study of the economy as a whole
a. True b. False Indicate whether the statement is true or false
According to the economist Julian Simon:
A. Legal immigrants have a favorable impact on the welfare of American citizens, but illegal immigrants have a negative impact that almost exactly offsets the positive effect of the legal immigrants. B. Legal and illegal immigrants have a positive effect on the welfare of American citizens. C. Legal and illegal immigrants have a negative effect on the welfare of American citizens. D. Legal immigrants have a favorable impact on the welfare of American citizens, but illegal immigrants have a negative impact. However, the positive effect of the legal immigrants is stronger than the negative impact of illegal immigrants.
Suppose that when output is 20, marginal cost is $20, and average total cost is $30. Then which of the following is most likely to be true?
A. Average total cost is declining. B. Average total cost is constant. C. Average total cost is rising. D. Average total cost is less than average fixed cost.