The local ice cream shop is trying to figure out how many workers to hire, and part of the decision will be based on the marginal product of labor. The following table shows a short-run production function for quantity of ice cream tubs produced. Diminishing marginal returns begins after hiring which worker?
a. first
b. second
c. third
d. fourth
b. second
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A decrease in monetary base ________ the quantity of money, the interest rate ________, and the quantity of money demanded ________
A) decreases; falls; decreases B) decreases; falls; increases C) decreases; rises; increases D) decreases; rises; decreases E) increases; falls; decreases
________ attempts to reduce negative externalities by ________
A) Negotiation; discovering who has which rights B) Negotiation; creating new rights C) Legislation; creating new rights D) Legislation; discovering who has which rights
In recent years, the amount of international trade in which the United States engages has increased. Which of the following accurately describes the effect(s) on labor demanded by firms in the United States?
a. The demand for both skilled and unskilled labor has increased. b. The demand for both skilled and unskilled labor has decreased. c. The demand for skilled labor relative to unskilled labor has risen. d. The demand for unskilled labor relative to skilled labor has risen.
Susan is a plant manager in charge of a factory in a relatively poor country. Even though market wages are low, she decides to raise the wages of her workers. Her decision
a. might increase profits if it means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive.
b. will help eliminate the excess supply of labor.
c. may cause her workers to reduce the effort they expend at their jobs.
d. All of the above are correct.