As a firm hires more labor in the short run, the
A) extra output of another worker may rise at first, but eventually must fall.
B) costs of production are increasing at a fixed rate per unit of output.
C) level of total product stays constant.
D) output per worker rises.
A
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Use the following graph (where L is the quantity of labor) to answer the next question.
It shows a firm that buys its inputs and sells its output in competitive markets. If the firm develops a new technology that increases labor productivity, the equilibrium level of employment for this firm is expected to be
A. higher than L0. B. L0. C. lower than L0. D. zero.
One of the risks of maturity transformation is that:
A) it can increase the rate of inflation. B) it reduces the profitability of banks. C) it can lead to bank runs. D) it discourages savings.
Since 1950, recessions in the United States
A) have become less severe than before 1950. B) have become more severe than before 1950. C) are about as severe as they were before 1950. D) have not occurred.
When we graph consumption as a function of national income rather than as a function of ________, the slope of this consumption function is the ________
A) disposable income; MPC B) personal income; MPS C) disposable income; MPS D) personal income; MPC