Evaluate the following statement. "If marginal product is falling it will bring down the average product."
What will be an ideal response?
This statement is not necessarily true. If marginal product is falling but still above average product then the average product will rise. However, if it is below average product then indeed it will bring average product down with it.
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Which of the following is a TRUE statement about monopoly and perfect competition?
A) Price is always higher and output higher under monopoly than under perfect competition. B) Because costs do not depend on market structure, price is usually higher and output is always lower under monopoly than perfect competition. C) If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition. D) If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition, and price may be below marginal cost instead of equal to marginal cost.
People who can earn higher market wages, other things constant, will
a. provide more labor to nonmarket work b. be more inclined to supply their labor to market work than to nonmarket work c. be more inclined to supply their labor to nonmarket work than to market work d. provide more labor to nonmarket work even if the market can provide the services more cheaply e. provide less labor to market work and more labor to nonmarket work
Beginning in the mid-1970s, Congress deregulated several industries including airlines and trucking
a. True b. False Indicate whether the statement is true or false
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.