As marginal physical product diminishes, marginal revenue product
A. Rises at a diminishing rate and eventually falls.
B. Also diminishes.
C. Rises.
D. Is not affected.
Answer: B
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Labor productivity is $20 per hour and aggregate hours are 400 billion hours
a. What does real GDP equal? b. Because of technological advances, labor productivity doubles to $40 per hour. Furthermore, assume that aggregate hours decrease to 300 billion hours. What does real GDP equal?
_________________ —a term describing a good in which the quantity demanded falls as income rises and in which quantity demanded rises and income falls.
a. Complement good b. Inferior good c. Normal good d. Superior good
The official unemployment rate may understate the true rate of unemployment because of
A. increases in worker productivity. B. discouraged workers who no longer are actively seeking work and are excluded from the statistics. C. changes in wage rates. D. workers who hold two jobs.
A decrease in lump-sum taxes will
A. shift the consumption function upward. B. shift the consumption function downward. C. make the consumption function steeper. D. make the consumption function flatter.