If marginal product is less than average product, then
A. marginal product must be decreasing.
B. marginal product must be increasing.
C. average product must be increasing.
D. marginal product could either be increasing or decreasing.
Answer: A
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Refer to the table above. If there is a sixth unit that Jenny consumes, and the marginal benefit derived from that unit is -1, the total benefit derived when the sixth unit has been consumed is:
A) $0. B) $3. C) $29. D) $39.
Which of the following is not a government transfer program?
a. unemployment compensation b. Social Security c. food stamps d. Medicare e. movement of soldiers to a different military base
The Fed's countercyclical policy during expansion and prosperity includes:
a. raising the required reserve ratio, raising the discount rate, and selling government bonds on the open market. b. raising the required reserve ratio, raising the discount rate, and buying government bonds on the open market. c. raising the required reserve ratio, cutting the discount rate, and selling government bonds on the open market. d. raising the required reserve ratio, cutting the discount rate, and buying government bonds on the open market. e. lowering the required reserve ratio, cutting discount rates, and buying government bonds on the open market.
You use $50,000 of your own money to start an espresso stand. During the first year you earn a 10% return on that investment. If the current interest rate on savings is 8%, you earn an economic profit of
A. -$4,000. B. $1,000. C. $4,000. D. $5,000.