Total profit is maximized if the slope of the total profit curve is
A. positive.
B. negative.
C. increasing.
D. zero.
Answer: D
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The above table shows the short-run total product schedule for the campus book store. When the fifth employee is hired, the marginal product is ________ and is ________ the average product
A) increasing; greater than B) increasing; less than C) decreasing; greater than D) decreasing; less than
If the market for hula-hoops is characterized by a very inelastic supply curve and a very elastic demand curve, an inward shift in the supply curve would be reflected primarily in the form of:
a. higher prices. b. higher output. c. lower prices. d. lower output.
If nominal income increases by 3 percent and real income increases by 4 percent, the price level must:
A. decrease by 7 percent. B. decrease by 1 percent. C. increase by 1 percent. D. increase by 7 percent.
“Crowding-out” refers to the process by which
A. high consumption leads to low saving and investment. B. the Fed prevents “runs” on banks. C. Fed sales of bonds reduce the ability of corporations to buy bonds. D. increased government spending raises interest rates, thus lowering investment spending.