The marginal product of textile workers in a factory is currently 3 yards of cloth while the average product is 5 yards of cloth. If another worker is hired.
A. the APL will not change
B. The APL will increase
C. The APL will decrease
D. the MPL will increase
Answer: C
Microeconomics
- An increase in the price level may be caused
- Which of the following events can cause short-term interest rates to increase?
- Suppose that wages increase sharply this year. Other things being equal a wide-spread increase in wages will have which of the following consequences for the U.S. economy?
- An unanticipated increase in inflation this year will
- If the US economy falls into a recession, then which of the following is likely to happen?
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- The price elasticity of demand for flights between RDU and Washington DC is equal to -3. A 20 percent decrease in air fare between RDU and D.C. will therefore result in
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- Which of the following statements about the federal budget deficit is true?
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- Suppose the equilibrium GDP is greater than potential real GDP. Which of the following is likely?
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- Which of the following statements is true?
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- A corporation earns $10 million in revenue this year. Accounting costs are $5 million for the year. The corporation owns assets valued at $20 million and has no debts. If the opportunity cost of capital for shareholders of the corporation is 10% it follows that the corporation's economic profit is
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- The supply of land is perfectly inelastic when