The marginal physical product of a factor of production is equal to the additional revenue generated from employing one additional unit of the factor.
Answer the following statement true (T) or false (F)
False
The marginal physical product (MPP) is the addition to total output that occurs when a firm hires one more worker. If the MPP is zero, the last worker hired does not contribute any additional output.
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In the law of torts, what is meant by a negligence standard? How does a negligence standard promote economic efficiency? How can it lead to less-than-efficient outcomes?
What will be an ideal response?
The money multiplier
A) equals 1 over the required reserve ratio. B) is an expression that converts the monetary base to the money supply. C) is larger than the simple deposit multiplier. D) is completely controlled by the Fed.
Purchases of domestic assets by foreign firms or households is called a:
A. trade deficit. B. trade surplus. C. capital outflow. D. capital inflow.
The short-run aggregate supply curve in modern Keynesian analysis
A. is a negatively sloped curve. B. is a horizontal line the same as in the Keynesian model. C. is an upward sloping curve. D. is a vertical line the same as in the classical model.