voluntary trade
What will be an ideal response?
-creates value and leads to economic progress
-both parties are made better off.
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One reason why, in the short run, the marginal product of labor might increase initially as more workers are hired is that
A) beyond some point, a firm has hired too many workers. B) specialization allows a worker to focus on one task, thereby increasing her proficiency at that task. C) the best workers are hired first and later hires are not as skillful. D) the first workers hired get to use the best equipment.
When a production possibilities frontier is bowed outward, the opportunity cost of the first good in terms of the second good increases as more of the second good is produced
a. True b. False Indicate whether the statement is true or false
Output for a simple production process is given by Q = 2KL, where K denotes capital, and L denotes labor. The price of capital is $25 per unit and capital is fixed at 8 units in the short run. The price of labor is $5 per unit. What is the total fixed cost of producing 80 units of output?
A. $25 B. $200 C. $33 D. $85
According to the quantity theory of money
A. velocity varies indirectly with the rate of growth of the money supply. B. a given proportionate increase in the money supply leads to an equal proportionate increase in the price level. C. a proportionate increase in the money supply leads to a less than proportionate increase in real Gross Domestic Product (GDP), at least in the long run. D. real Gross Domestic Product (GDP) is directly related to changes in the money supply in the long run.