Jeff owns a garage and has 3 mechanics to help him. With the tools used being fixed in the short run, his production function is given by 5 + 2L = Y , where L is the number of mechanics and Y is the number of cars they can fix. If Jeff hires a fourth mechanic, what will be the marginal product of the new mechanic hired?

"Crowding out" refers to ...

Select one: a. reduced exports due to rising exchange rates. b. supply-side tax cuts reducing entitlement spending. c. reduced consumption due to increases in marginal tax rates. d. a reduction in the availability of private capital.

The "big tradeoff" refers to

A) producing capital goods instead of consumable goods. B) marginal benefit versus marginal cost. C) efficiency and fairness. D) taking an economics course instead of some other course. E) using market prices rather than a command system to allocate resources.