If a firm employs an extra unit of labor, the additional product generated by employing the extra unit of labor is
A. the diminished marginal product.
B. the marginal physical product of labor.
C. marginal revenue.
D. total product.
Answer: B
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To appreciate the U.S. dollar against the Mexican peso, in the foreign exchange market the Fed could ________ dollars and ________ pesos
A) buy; buy B) sell; sell C) sell; buy D) buy; sell E) None of the above answers is correct because the Fed cannot affect the U.S. exchange rate.
The "monopoly issue" is concerned with the fact that
(a) monopolies will "charge what the traffic will bear" in order to maximize their profits. (b) monopolies will attempt to increase their profits by discriminating among their customers and charge prices that they are willing to pay, instead of charging one price. (c) monopolies will be able to charge higher prices and earn higher rates of return than competitive firms. (d) all of the above apply.
If demand deposits increase, the result is that
a. required reserves must increase b. the reserve ratio must increase c. all banks are "loaned up" d. the number of loans must decrease e. all banks are suffering a loss
Recently Apple Computer developed Apple's new iTunes Music Store, which offers more than 200,000 songs from five major record labels, for use with Apple's iPod and iMac. More than a million songs were downloaded the first week alone! In economic terms,
CEO Tim Cook helped convert capital and labor inputs into products consumers use. Any activity that results in the conversion of resources into products that can be used in consumption is A) not profitable. B) a start up venture. C) demand. D) production.