In a liquidity trap:
a) monetary policy is very effective in changing income and output.
b) fiscal policy is ineffective in changing income and output.
c) monetary policy is ineffective in changing income and output.
d) monetary policy is somewhat effective in changing income and output in the short-run.
Ans: c) monetary policy is ineffective in changing income and output.
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Table 30.1 Number of workers (per hour)Total output (per hour)Marginal physical product (output per worker)Total revenue (dollars per hour)Marginal revenue product (dollars per hour worker)14---________---210________________________315________________________419________________________522________________________Assume that the product price is $4 per unit and that the hourly wage for workers is $12. Neither price nor wage changes with output. In Table 30.1, the marginal revenue product of the second worker hired is
A. $6 per hour. B. $24 per hour. C. $4 per hour. D. $40 per hour.
Refer to the above table. What is the marginal factor cost when the firm employs the second unit of labor?
A) $19
B) $21
C) $36
D) $38
Countries should specialize and import goods in which they have a comparative disadvantage
a. True b. False Indicate whether the statement is true or false
If two investments, X and Y, have the same expected return an individual investor would prefer:
a. the one with a higher standard deviation. b. the one with a higher mean. c. the one with a lower correlation coefficient. d. the one with a lower variance.