Suppose that for a given firm, the increase in output resulting from the last worker hired is less than the increase in output of the previous worker hired. This is an example of:
A. diminishing returns.
B. constant returns.
C. increasing return.
D. capital deepening.
Answer: A
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According to the H-S definition of income, employer contributions are excluded from money income.
A. True B. False C. Uncertain
Google gained its monopoly power in the market for internet-search service because it:
A. Is a licensed natural monopoly B. Was first to market and gained consumer loyalty C. Took over the market from older firms through creative destruction D. Advertised its services very heavily
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Suppose there are 100 identical firms producing package delivery services. One of the firms finds that when it has to pay a wage rate of $7, it hires 20 delivery people. The firm charges an average price of $10 to deliver a package. From this information, we know that the package delivery industry is hiring a total of:
a. 100 workers. b. 200 workers. c. 700 workers. d. 2,000 workers. e. 10,000 workers.