In the Ricardian model, the marginal product of labor:

a. first rises, then falls, as more labor is employed to produce a good.
b. first falls, then rises, as more labor is employed to produce a good.
c. continuously falls, as more labor is employed to produce a good.
d. does not change, as more labor is employed to produce a good.

Answer: d. does not change, as more labor is employed to produce a good.

Economics

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An upward sloping short-run aggregate supply curve suggests that

A) prices and wages are completely inflexible. B) prices and wages adjust in part to short-run demand changes. C) prices and wages are completely flexible. D) real GDP is determined by aggregate supply.

Economics

Currently, total government expenditures in the United States have totaled about:

a. one-tenth of GDP. b. one-fifth of GDP. c. 40 percent of GDP. d. one-half of GDP.

Economics