Suppose a manager is deciding how to allocate workers between two plants. The marginal product of labor in plant 1 is 10 units of output. The marginal product of labor in plant 2 is 14 units of labor. What should the manager do?
A. Reallocate workers from plant 1 to plant 2, because MPL is greater in plant 1 than in plant 2.
B. Reallocate workers from plant 1 to plant 2, because MPL is greater in plant 2 than in plant 1.
C. Reallocate workers from plant 2 to plant 1, because MPL is greater in plant 1 than in plant 2.
D. Reallocate workers from plant 2 to plant 1, because MPL is greater in plant 1 than in plant 1.
B. Reallocate workers from plant 1 to plant 2, because MPL is greater in plant 2 than in plant 1.
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. B; C C. B; A D. D; B
Deposit made by the public into a savings account are referred to as:
A) current deposits. B) stockholders' equity. C) demand deposits. D) overdraft.
Figure 11-1
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In Figure 11-1, a technological breakdown in calculator production would cause which movement?
A. B to E B. B to C C. B to D D. A to D
In Hong Kong, the monetary authority can only increase the monetary base if they accumulate more U.S. dollars because:
A. the monetary authority in Hong Kong operates a currency board where its sole objective is to fix the exchange rate between its currency and the U.S. dollar. B. Hong Kong has received substantial funding from the U.S. Treasury and the loans were conditional on maintaining the value of the Hong Kong currency. C. the currency of Hong Kong is the U.S. dollar. D. the IMF required Hong Kong to peg its currency to the U.S. dollar in order to obtain a loan.