Marginal factor cost is
A) the change in the value of output from using an additional unit of the factor.
B) the cost of an additional unit of output.
C) the total value of factor cost divided by the one cost that is being held constant.
D) the cost of using an additional unit of an input.
D
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If the price elasticity of demand for clothing is 0.64, this implies that
A) a 6.4 percent increase in price the price of clothing leads to a 10 percent decrease in the quantity demanded. B) a 10 percent increase in the price of clothing leads to a 6.4 percent decrease in the quantity demanded. C) if there is an increase in the price of clothing the total expenditures on clothing decreases. D) Both answers A and C are correct.
From the Keynesians' perspective, a short-run Phillips Curve exists because
A) wages and prices are perfectly flexible. B) money demand is unstable. C) investment is unstable. D) wages change more slowly than the price level.