The Average Product of Labor is
A) the change in total product resulting from an extra unit of labor, holding other factors constant.
B) the ratio of output to the number of workers used to produce that output.
C) the amount of output that can be produced by a given amount of labor.
D) equal to the marginal product of labor when the average product is increasing.
B
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Specialization is another word for
A) pursuing one's comparative advantage. B) the division of labor. C) producing at a comparably lower opportunity cost. D) all of the above. E) none of the above.
A firm purchases $600,000 worth of raw materials and pays wages and salaries of $100,000 and dividends of $200,000 . If the firm sells its output for $1 million, the firm's value added to GDP is
a. $300,000. b. $400,000. c. $900,000. d. $1,000,000.
One valuable lesson investors should learn from the stock market behavior during the late 1990s and early 2000s is that the Fed:
A. can control the stock market. B. cannot prevent a stock market decline. C. can reduce the idiosyncratic risk of investing but not the systematic risk. D. can eliminate the risk from investing.
A cash payment made by the government to people who do not supply goods, services or labor in exchange for the payment is a(n)
A. "in kind" payment. B. budget deficit. C. dividend payment. D. transfer payment.