Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above
Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the opportunity cost of Silvio's entrepreneurship, $1,000 per week. Suppose Silvio's uses Plant 2. If Silvio hires the 4th worker, the firm will experience ________ marginal returns. A) diminishing
B) increasing
C) constant
D) zero
A
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Starting from a position of macroeconomic equilibrium at below the full-employment level of real GDP, an increase in the money supply will:
A. raise interest rates, prices, and reduce real GDP. B. raise interest rates, lower prices, and leave real GDP unchanged. C. raise interest rates, lower prices, and leave real GDP unchanged. D. lower interest rates, raise prices, and increase real GDP.
The breakeven level of income is
A. The amount of income that can be earned without a loss of welfare benefits. B. The amount of welfare benefits that can be received without taxation. C. A welfare recipient who is ignored or who does not receive benefits. D. The highest level of income a household can earn and still receive welfare benefits.