The fact that the production function relating output to labor becomes flatter as we move from left to right means that
A. there is diminishing marginal productivity of capital.
B. the marginal product of capital is positive.
C. there is diminishing marginal productivity of labor.
D. the marginal product of labor is positive.
Answer: C
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The natural rate of unemployment is defined as the rate of unemployment that
A) exists only during periods of recession or depression in the economy. B) exists due to welfare and unemployment benefits that reduce potential workers' incentives to find work. C) prevails in long-run macroeconomic equilibrium, when all workers and employers have fully adjusted to any changes in the economy. D) prevails in the short-run macroeconomic equilibrium, before workers and employers have had a chance to adjust to an economic shock.
A political equilibrium can never be reached without voters, firms, politicians and ________
A) bureaucrats B) public costs C) indifference curves D) market prices
If you own a bond with a 3 percent coupon rate and new bonds are paying 8 percent, what will happen to your bond's market price?
What will be an ideal response?
Because a firm has implicit costs as well as explicit costs
A) its accounting profit is always less than its economic profit. B) its economic profit is usually the same as its accounting profit. C) its economic profit is usually less than its accounting profit. D) its economic profit is usually more than its accounting profit.