Refer to the graph below. At which point is marginal product (MP) at its maximum?
A. Point A
B. Point B
C. Point C
D. Point D
A. Point A
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Gross investment
A) is the purchase of new capital. B) includes only replacement investment. C) does not include additions to inventories. D) Both answers A and B are correct.
Suppose a fishing boat reaches its most productive use of each person's talent with 15 crew members. More than 15 workers would cause overcrowding. If there are only 10 crew members currently on the boat, adding one more crew member will
a. require the owner to add another boat b. increase the level of labor productivity c. have no effect on labor productivity d. reduce the need for other variable inputs such as fuel e. reduce the total variable cost of operating the fishing boat
If the population increase in India is smaller than the increase in Indian real GDP, then GDP per capita will
a. decrease. b. increase. c. remain constant. d. increase more slowly than real GDP.
If the economy is represented in the graph shown and is currently at point E3, then the economy must be in:
A. a recession. B. an economic boom. C. an economic recovery. D. long-run equilibrium.