As the quantity of labor employed decreases, the value of marginal product diminishes
Indicate whether the statement is true or false
FALSE
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The U.S. dollar exchange rate, e, where e is the nominal exchange rate expressed as Japanese yen per U.S. dollar, will depreciate when:
A. Japanese consumers increase their preference for U.S. cars. B. the U.S. Federal Reserve eases monetary policy. C. real GDP in the U.S. decreases. D. the Bank of Japan eases monetary policy.
Refer to Figure 13-11. The firm represented in the diagram
A) makes zero economic profit. B) should exit the industry. C) makes zero accounting profit. D) should expand its output to take advantage of economies of scale.
Initially a firm pays a wage and gets an output per worker which are given index numbers of 1.00. Five possible 3 percent increases in the wage and the accompanying output per worker are as follows:
1.03 and 1.09, 1.06 and 1.17, 1.09 and 1.24, 1.13 and 1.29, 1.16 and 1.31. What is the efficiency wage? A) 1.03 B) 1.06 C) 1.09 D) 1.13 E) 1.16
Government purchases that are counted as part of GDP can be less than the government's total budget because:
A. only the budget surplus or deficit is counted as part of GDP. B. government purchases are not counted as part of GDP. C. taxes are not counted as part of GDP. D. transfer payments are not counted as part of GDP.