Holding the price of a firm's output constant, if the marginal product of labor increases
A) the marginal products of other inputs also increase.
B) the marginal revenue product of labor also increases.
C) the marginal revenue product of labor may increase or decrease.
D) the marginal revenue product of labor decreases.
B
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The opportunity cost of producing a laptop is lower in Laborland than in Utopia while the opportunity cost of producing wheat is lower in Utopia than in Laborland. However, Laborland can produce more of both the goods
i) Can mutually beneficial trade take place between the two countries? Explain your answer. ii) Which country should specialize in the production of which good?
The Fed responds to money demand shocks by
a. changing the velocity of money b. changing the money supply c. following the money creation rules responsible for its success in the past two decades d. increasing the required reserve ratio e. changing its definition of the natural rate of unemployment