Why is the marginal product of labor for Moe’s higher with two employees than it is with more workers?
a. Adding a second worker yields the biggest efficiency gain.
b. It is less expensive to pay only two workers than for three or more workers.
c. Variable costs are higher with fewer workers.
d. The second worker is the best employee.
a. Adding a second worker yields the biggest efficiency gain.
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Potential GDP is the value of real GDP when ______
A. the unemployment rate equals the natural unemployment rate B. there is no frictional unemployment C. there is no structural unemployment D. the unemployment rate is zero
Changes in autonomous consumption will affect the slope of the consumption function
a. True b. False Indicate whether the statement is true or false
If the U.S. purchases oil from Nigeria, what is the effect in the foreign exchange market?
a. It will increase demand for U.S. dollars. b. It will decrease demand for U.S. dollars. c. It will increase supply of U.S. dollars. d. It will decrease supply of U.S. dollars.
When an economy is not using all of its resources, it is producing at a point below its production possibilities frontier
Indicate whether the statement is true or false