Complete the following table by finding the average and marginal product. At what input-output level will average variable cost begin to rise? Explain
With equal pay for each worker, average variable cost will begin to rise for the third worker’s output because that is the point where diminishing returns begin.
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In recent years unemployment rates in several European countries have been higher than unemployment rates in the United States. Many economists believe that European unemployment rates have been higher because
A) European firms hire many seasonal workers from other countries, and this tends to inflate unemployment rates in their countries. B) of the different methods used to measure unemployment. If similar methods were used, unemployment rates in Europe and the United States would be about the same. C) the size of the military is much larger in the United States and all military personnel are classified as employed. D) unemployment benefits are more generous in Europe than in the United States.
If the firm in Figure 17-4 above maintains its set price of P0, rather than dropping price to P1, it must be facing a "menu cost" of adjusting its price that exceeds
A) K - G. B) K + G. C) G - K. D) J. E) K.
The biggest difference between mutual funds and life insurance policies is:
A. one is considered savings, and the other is an investment. B. one is a savings plan, and one allows you to reduce your risk. C. when you can have access to your contributions. D. when you are required to contribute to them.
Specialization in production is important primarily because it:
A. results in greater total output. B. allows society to avoid the coincidence-of-wants problem. C. allows society to trade by barter. D. allows society to have fewer capital goods.