When a firm is able to put idle equipment to use by hiring another worker,
a. variable costs will rise.
b. variable costs will fall.
c. fixed costs will fall.
d. both fixed costs and variable costs will rise.
a
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An example of a public good or service provided by the federal government is
A) garbage collection. B) regulating gasoline prices. C) space exploration. D) determining the number of doctors admitted to medical school. E) setting each state government?s budget.
Refer to the above table. If the price of the good produced is $5, the marginal revenue product of the 5th worker is
A) $3350. B) $670. C) $500. D) $100.
When an economy is experiencing a negative output gap, it means that the:
A. actual output is less than their potential output. B. actual output is more than their potential output. C. price level is rising. D. price level is falling.
In the context of aggregate supply, the short run is defined as the period during which
a. some prices are set by contracts and cannot be adjusted. b. prices can change, but neither aggregate supply nor aggregate demand can shift. c. individuals have sufficient time to modify their behavior in response to price changes. d. quantity changes cannot occur in response to changes in relative prices.