A final good is one that
A) is used in the production of another good.
B) is a natural resource used to produce a good.
C) is purchased as an input in the production process.
D) is purchased by its final user.
Answer: D
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If the MPP of labor is positive, the total revenue will grow with each additional worker hired. Yet firms stop hiring before MPP reaches zero because
a. the firm's physical capacity (factory) is limited, that is, the firm's ability to hire is limited by space b. there isn't a sufficient supply of workers at the wage rate paid by the firm c. the wage rate would have to increase, which reduces MPP d. they maximize their gains from hiring at MRP = wage rate and that does not occur at MPP = zero e. marginal revenue product will become negative before MPP does
Suppose the equilibrium level of national income is $800 billion and the MPC is 0.8 . Suppose as well that people decide to increase their saving by $30 billion. Before this change, people intended to save $100 billion and producers intended to invest $100 billion. The new equilibrium level of national income is
a. $600 billion b. $650 billion c. $680 billion d. $730 billion e. $800 billion