The total amount of consumption of a society can be increased if
A. firms allow each worker to perform multiple tasks.
B. resources are allocated by a central planning group.
C. individuals engage in specialization and voluntary trade.
D. barter exchange is used in place of money.
Answer: C
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Foreign investment in the United States and U.S. investment abroad is recorded in the
A) capital and financial account. B) investment account. C) current account. D) creditor/debtor account. E) official settlements account.
A firm will shut down in the short run if revenue is not sufficient to cover its variable costs of production
a. True b. False Indicate whether the statement is true or false
Suppose you are using 10 units of labor in your short-run production process. At this point, the average product of your labor is 10, and the marginal product of the last unit of labor was 14. Given this, we know that the
A. marginal product of labor must be decreasing. B. average product of labor must be decreasing. C. marginal product of labor must be increasing. D. average product of labor must be increasing.
Which of the following describes the relationship between the marginal product of labor and marginal costs?
a. Marginal product and marginal costs rise and fall in sync. b. When marginal product is rising, marginal costs are falling. c. Marginal costs must be known to figure marginal product. d. Marginal product equals change in marginal cost divided by output.