Look at the production schedule of the Widget Company below:
Number of workers 0 1 2 3 4 5
Number of widgets 0 12 22 30 36 40
What is the marginal product of the second worker?
A) 8
B) 10
C) 12
D) 22
B
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The high correlation between rapid growth in exports and rapid economic growth observed in several East Asia countries in recent decades
A) proves that export promoting trade policy leads to relatively rapid economic growth. B) proves that a free-trade orientation of trade policy results in rapid economic growth. C) proves that exports help growth, whereas imports impede growth. D) proves that trade policy is the most important policy area for promotion of economic development. E) does not prove that trade liberalization always leads to rapid economic growth.
As more workers are hired, the marginal physical product of labor eventually declines because
A) less efficient workers are hired as the number of workers increases. B) workers do not work well together when the number of workers increases. C) the amount of capital each worker has to work with declines as the number of workers increases. D) of diseconomies of scale.
In general, price controls have a:
A. larger effect in the long run because demand and supply become more elastic over time. B. larger effect in the short run since demand and supply become more elastic over time. C. smaller effect in the long run since demand and supply become less elastic over time. D. smaller effect in the short run because demand and supply become less elastic over time.
The following is NOT an example of a potential monitoring solution to moral hazard
a. blocking social network sites on company computers b. termination for failing to show up to work during the probationary period c. GPS tracking devices in repair trucks d. listening in on call center conversations