Marginal revenue product is
A) marginal physical product multiplied by marginal revenue.
B) marginal physical product multiplied by average variable cost of the product.
C) the price of the product.
D) the total revenue from the sale of the product sales.
Answer: A
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Price floors are used as a method to
a. assure consumers that prices won't fall in the future b. protect producers from paying high prices for the resources they use to produce goods c. guarantee that there will be enough food for consumers d. combat excess demand in the market e. ensure sellers a minimum price for their goods
A cause of the decline in the velocity of money during the 2007-2009 financial crisis was a result of:
A. the fiscal stimulus provided by the U.S. government. B. the lowering of the discount rate by the Fed. C. an increase in uncertainty. D. the use of unconventional policy tools by the Fed.
If you were told the MPC was = 0.75 and the government engaged in a tax decrease of $400B, then the overall change in GDP would be:
A. $1200B B. $400B. C. $300B. D. $1600B.
Suppose a firm can produce 70 units of a product, Zenia, by combining labor, land, capital, and entrepreneurial ability, as in the four alternative techniques shown in the table below. Assume further that the firm can hire labor at $3 per unit, land at $3 per unit, capital at $6 per unit, and entrepreneurship at $9 per unit. Techniques ABCDLabor41065Land5333Capital5244Entrepreneurship1111 Refer to the provided table. If the price of labor declines from $3 to $2 per unit, then what is the least costly way of producing Zenias?
What will be an ideal response?