When a firm hires 10 units of labor, 20 pens are produced. When it hires another unit of labor, the total output increases to 23 pens. If the price of one pen is $2, the value of marginal product of the eleventh unit of labor is:
A) $1.50.
B) $2.
C) $4.
D) $6.
D
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M1 includes all but which of the following?
A) savings deposits. B) currency in the hands of the public. C) transactions accounts. D) travelers checks.
The long run: a. is a period long enough for every input except plant size to be varied. b. is a period in which there are no fixed costs
c. is typically a period of two years. d. is all of the above.
Suppose right now the inflation rate is 3 percent and the unemployment rate is 4 percent, but 10 months from now unemployment has dropped to 1 percent. Based on the Phillips curve, what else can you assume about the economy 10 months from now?
a. Inflation will also be 1 percent. b. Real wages will be 1 percent higher. c. Inflation will still be very near 3 percent. d. Inflation will be greater than 3 percent.
As price rises, quantity supplied
A. rises. B. falls. C. remains the same.