Marginal revenue is the change in total revenue from using one more unit of an input in the short run
a. True
b. False
B
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If a demand curve for a good were completely vertical, it would be considered:
a. perfectly elastic. b. perfectly inelastic. c. of unitary elasticity. d. relatively inelastic.
Supply-side economics stresses that
a. aggregate demand is the major determinant of real output. b. marginal tax rates exert important incentive effects that influence real output. c. an increase in government expenditures and tax rates will cause real income to rise. d. expansionary monetary policy will cause real output to expand without accelerating inflation.
What is the price of a TV in an open economy without a quota?
A. $75 B. $125 C. $100 D. $150
In the short run, why does a production function eventually display diminishing returns to labor?
A) As the number of workers increases it becomes difficult to monitor them. B) As a firm hires more workers the skills and the work ethic of the additional workers will eventually decline. C) As the number of workers increases eventually the gains from the division of labor and specialization are used up. D) The opportunity cost of hiring additional workers must eventually rise.