The marginal physical product of labor is
A. the output of the firm divided by the number of workers.
B. the change in total revenues resulting from the addition of one more worker, while increasing one other factor of production.
C. the change in output resulting from the addition of one more worker, adjusting the level of the capital stock accordingly.
D. the change in output resulting from the addition of one more worker, holding other factors of production constant.
Answer: D
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From the economic point of view, "joint costs" are problematic because
A) they can only be determined in markets for illicit drugs. B) there is no way to correctly allocate joint costs. C) they can be measured only by the most sophisticated accounting techniques. D) there is no way to discuss the concept meaningfully.
Monetarists believe in a relatively unstable __________ curve, and thus recommend a monetary policy targeting the __________
A) IS; money supply B) IS; interest rate C) LM; money supply D) LM; interest rate
In the classical model the interest rate is determined by
a. real investment demand. b. real saving. c. government spending. d. tax revenues. e. all of the above.
Refer to the diagram for a specific economy. Which of the following best describes the relationship shown by this curve?
A. The demand for labor is large when the rate of inflation is low.
B. When the rate of unemployment is high, the rate of inflation is high.
C. The rate of inflation and the rate of unemployment are inversely related.
D. The rate of inflation and the rate of unemployment are directly related.