If a firm experiences constant returns to the variable input in the short run:
A) marginal product will be greater than average variable product, but the two will become more equal as output increases.
B) marginal product will be less than average variable product, but the two will become more equal as output increases.
C) marginal product will be greater than average variable product, and the difference between the two will become larger as output increases.
D) marginal product and average variable product will be equal over the range of output in question.
D
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John deposits $800 at an annual interest rate of 6%. The total amount in John's account after one year will be:
A) $822. B) $848. C) $864. D) $950.
Firms that coordinate economic activities to reduce competition is considered illegal per se.
Answer the following statement true (T) or false (F)
Exhibit 14-8 Aggregate demand and supply
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In Exhibit 14-8, if aggregate demand shifts from AD1 to AD2,
A. real GDP will increase from $3.0 to $7.0, and the price level will remain the same. B. real GDP will increase from $3.0 to $4.0, and the price level will remain the same. C. real GDP and the price level will both remain the same. D. real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140.
Individuals who have stopped looking for work because they are convinced that they will not find a job are considered
A. part of the labor force. B. structurally unemployed. C. underemployed. D. discouraged workers.