Refer to Figure 6.1. At point C
A) the marginal product of labor is greater than the average product of labor.
B) the average product of labor is greater than the marginal product of labor.
C) the marginal product of labor and the average product of labor are equal.
D) the marginal product of labor and the average product of labor are both increasing.
E) Both B and D are correct.
B
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For an inferior good, the income and substitution effects
A) work together. B) work against each other. C) can work together or in opposition to each other depending upon their relative magnitudes. D) always exactly cancel each other.
The combined incomes of Walmart, ExxonMobil and Chevron total more than the GDP of:
a. Belgium b. Denmark c. Ireland d. all of these
Based on the graph showing a reduction in the growth of the money supply, if the inflation rate remains at 3 percent for a substantial amount of time, people will adjust their expectations regarding the inflation rate to this level, which ______.
a. shifts the short-run Phillips curve to the left
b. shifts the short-run Phillips curve to the right
c. moves the economy back down the Phillips curve to Point A
d. moves the economy back up the Phillips curve to Point B
Arriving at a decision by comparing total costs and total benefits is called marginal analysis
Indicate whether the statement is true or false