The table below shows how the output of wool fabric varies with the number of workers employed in a factory. The average product of workers in this factory
a. declines steadily from 15 yards of fabric per worker per day to 10 yards of fabric per worker per day, as employment in the factory is increased from 1 to 7 workers.
b. is maximized when 3 workers are employed per day.
c. is maximized when 2 workers are employed per day.
d. is equal to 20 yards of fabric per worker per day, no matter how many workers are employed per day.
c. is maximized when 2 workers are employed per day.
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A current account deficit is matched by a financial account surplus
a. True b. False Indicate whether the statement is true or false
Which statement is true?
A. The largest merger in history involved Chase Manhattan Bank. B. There have been only two mergers in our entire history valued at over $15 billion. C. It is illegal under our antitrust laws for two firms in the same industry to merge. D. None of these statements are true.
When RBC economists compare the correlations in their models to the data, what are they looking at?
A. The amount of random variation in economic variables B. The degree to which different economic variables move together C. The strength of procyclicality of different variables D. The degree to which variables lead output over the business cycle
Present bias implies that:
A) a consumer gives much more weight to the future than to the present. B) a consumer gives much more weight to the present than to the future. C) discount weights for delayed consumptions will always equal one. D) discount weights for delayed consumptions will always be greater than one.