Central bank independence refers to the central bank’s ability to make decisions without political interference.

If the marginal revenue product of the fifth worker is $15, the price of the last unit of output produced is $5, and the firm sells as a price searcher, then the marginal product of the fifth worker is

a. 3 units of output b. 45 units of output c. fewer than 3 units of output d. greater than 3 units of output e. greater than 75 units of output

Suppose wheat farmers are price takers. If wheat farmers are currently making economic profits, over time we would expect that

a. existing wheat farmers would plant more acres of wheat. b. farmers growing other crops would switch some of their land from these crops to the growing of wheat. c. the wheat farmers will continue to earn economic profits because they would be driven out of business without such profit. d. both a and b are correct.