In the short run when the marginal product of labor ________, the marginal cost of an additional unit of output ________.
A. rises; rises
B. falls; falls
C. falls; rises
D. rises; doesn't change
Answer: C
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Rawls argued that agreement on certain rules from behind a "veil of ignorance" would make those rules optimal
a. True b. False
The absence of value judgments is the essence of
A) normative economics. B) positive economics. C) microeconomics. D) macroeconomics.
When the equilibrium price of a product is present
a. neither consumers nor producers will benefit from the exchanges. b. the value of the products to the consumers will exceed the costs of the resources required for their production. c. the consumers will benefit from the exchanges, but the producers will experience losses. d. the producers will profit from the exchanges at the expense of consumers.
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Calculators Per HourComputers Per HourSmith10010Jones1206Suppose Smith and Jones begin by producing 0 computers and 220 calculators per hour. If they wish to produce 2 computers and 200 calculators per hour efficiently, then Smith should spend ________, and Jones should spend ________.
A. 12 minutes making computers and 48 minutes making calculators; 1 hour making calculators B. 48 minutes making computers and 12 minutes making calculators; 1 hour making calculators C. 1 hour making calculators; 10 minutes making computers and 50 minutes making calculators D. 30 minutes making each; 30 minutes making each