Investment in human capital
A. shifts the aggregate production function downward.
B. shifts the LRAS to the left.
C. shifts the aggregate production function upward.
D. decreases the aggregate demand for labor.
Ans: C. shifts the aggregate production function upward.
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Total revenue earned from the sale of a good is:
A) the price at which the good is sold. B) the difference between price and cost of production of the good. C) the product of price and quantity of the good sold in the market. D) the product of cost of production and quantity of the good sold in the market.
When is it not in the best interest of a company to hire additional workers in the short run?
A) when the average product of labor is decreasing B) when the firm is in Stage II of the production process C) when the marginal revenue product equals zero D) when the wage rate is equal to or greater than labor's marginal revenue product