Assume that one laborer produces 6 units of output, two laborers produce 14 units, three laborers 22 units, four laborers 24 units, and five laborers 25 units. Diminishing returns set in when the firm hires:

What would the Fed have done if it had tried to keep the exchange rate at its 2001 level?

A) buy dollars and sell euros B) sell dollars and sell euros C) sell dollars and buy euros D) buy dollars and buy euros E) None of the above is correct because the Fed cannot affect the exchange rate.

In the simultaneous move labor negotiation game:

a. The payoffs are always higher if you accommodate b. The payoffs are always higher if you bargain hard c. The payoffs from accommodating are only higher if your opponent bargains hard d. The payoffs from accommodating are only higher if your opponent accommodates