The above table shows the total product schedule for Hair Today, a hair styling salon
a) What is the first worker's marginal product? The second worker? The third worker? The fourth worker? The fifth worker? b) Over what range of workers is there increasing marginal returns? Over what range is there decreasing marginal returns?
a) The first worker's marginal product is 10 hair stylings. The second worker's marginal product is 15 hair stylings. The third worker's marginal product is 20 hair stylings. The fourth worker's marginal product is 15 hair stylings. The fifth worker's marginal product is 10 hair stylings.
b) There are increasing marginal returns for the first 3 workers. After the third worker, there are decreasing marginal returns.
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Which of the following decreases money demand?
A) Bonds become more risky. B) The introduction of online banking. C) Disruptions in the banking system. D) An increase in ATM fees.
The Taylor rule
A) is a rule stating that money should grow at a constant rate. B) is not considered to be a practical policy rule for central banks to follow. C) dictates that the central bank's target interest rate be responsive to real economic activity and to inflation. D) dictates that the nominal interest rate stay constant in the long run.
A liquidity trap is
a. the vertical portion of the LM schedule. b. the horizontal portion of the LM schedule. c. a situation where a given change in the money stock induces a large reduction in the interest rate. d. Both a and c e. Both b and c
An industrial union can obtain a wage higher than the competitive level
a. without any change in total employment b. at the cost of a reduction in total employment c. and achieve higher total employment as well d. and achieve the same or higher total employment e. thus increasing the quantity of labor demanded