The value of marginal product of labor is the increase in
A) revenue created by producing one more unit of output.
B) revenue created by hiring one more unit of labor.
C) total product necessary to make revenue increase by one dollar.
D) total product generated by hiring one more unit of labor.
B
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When a model takes into account the fact that several different generations may coexist simultaneously, this is known as a(n)
A. neoclassical model. B. life-cycle model. C. overlapping generation model. D. crowding-out model.
If a bank receiving a new deposit of $200,000 would be able, as a result, to increase their lending by at most $120,000, then the required reserve ratio equals: a. 4%
b. 25%. c. 40%. d. 50%.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real GDP and current international transactions in the context of the Three-Sector-Model?
a. Real GDP falls, and current international transactions become more negative (or less positive). b. Real GDP rises, and current international transactions become more negative (or less positive). c. Real GDP and current international transactions remain the same. d. Real GDP rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
In the ___________, total production keeps growing, but by smaller and smaller amounts.
Fill in the blank(s) with the appropriate word(s).