A student wrote: "When the average product of labor exceeds the marginal product, the marginal product is increasing." If you were the instructor, how would you correct this statement?
What will be an ideal response?
There are several errors. The corrected sentence is "When the average marginal product of labor exceeds the marginal average product, the marginal average product is increasing."
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Government intervention
a. provides incentives to conduct business in an illegal black market b. plays no role in generating wealth c. is the best way to eliminate poverty d. does not enforce property rights
The unemployment rate equals the percentage of the labor force that is unemployed
a. True b. False Indicate whether the statement is true or false
Between 1960 and 2010 our gross savings rate
A. rose about one third. B. stayed about the same. C. declined by about 50%. D. declined by about 20%.
Investment in human capital shifts the aggregate supply curve leftward.
Answer the following statement true (T) or false (F)