If the firm's marginal physical product is 8, and its handicrafts sell for $70, at a labor cost of $150, the firm is operating
a. short of an optimal input point.
b. at the optimum input point.
c. beyond the optimum input point.
d. There isn't enough information to determine if the input point is optimal.
a
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Which of the following would NOT be a reason why developed nations would try to coordinate their macroeconomic policies?
A) To achieve a desirable level of world economic growth B) To avoid imposing a disproportionate burden on one major country in its attempt to help other world economies C) To stimulate production in other countries using the higher incomes generated by policy coordination D) To coordinate retaliatory policies on developing countries' trade barriers E) None of the above. That is, A, B, C, and D are all correct.
What characterized the 1950–1962 economy (from the Korean War to the last year of John F. Kennedy's presidency)?
(a) Significant inflation (b) Deflation (c) High unemployment (d) Falling prices and wages
According to classical economists, when aggregate demand decreases
A) unemployment is reduced, the price level increases, and equilibrium real GDP is reached. B) unemployment is reduced, the price level decreases, and equilibrium real GDP is reached. C) unemployment temporarily increases, the price level increases, and equilibrium real GDP is reached. D) unemployment temporarily increases, the price level decreases, and equilibrium real GDP is reached.
When trying to determine the standard of living in a given country, it is not important to observe its income distribution, because what we are interested in is the income per person in the economy
a. True b. False Indicate whether the statement is true or false