The marginal product of a factor of production
A) is equal to the ratio of the amount of that factor of production to the amount of output produced.
B) is equal to the amount of additional output that can be produced with one additional unit of each factor input.
C) is equal to the amount of additional output that can be produced with one additional unit of that factor input, holding constant the quantities of the other factor inputs.
D) always exceeds the average product of that factor input, holding constant the quantities of the other factor inputs.
C
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Which of the following statements is true?
A) The slope of the labor supply curve depends only on the income effect of a wage rate change. B) The income effect and the substitution effect of a wage rate change work in the same direction. C) The income effect and the substitution effect of a wage rate change work in opposite directions. D) The slope of the labor supply curve depends only on the substitution effect of a wage rate change.
If the probability of losing your job remains ________, a recession would be a good time to purchase a home because the Fed usually ________ interest rates during this time
A) low; lowers B) low; does not change C) high; lowers D) low; raises E) high; raises
Supporters of minimum-wage legislation argue that:
A. workers deserve a basic standard of living. B. it would not be fair for firms to pay a wage that would leave workers struggling to escape poverty. C. a worker earning minimum wage should be able to live above the poverty line. D. All of these are true.
Whenever a choice is made:
A) the value of all the other choices that could have been made is called opportunity cost. B) normative economics is encountered. C) the problem of "all other things unchanged" results. D) the opportunity cost of that choice is the highest-valued other choice that could have been made.