Which of the following experiments will yield observations that would allow one to calculate the marginal physical product of labor?
a. increase the number of lumberjacks with chain saws and observe the change in output of cut trees
b. increase the number of workers on an assembly line and record the change in output
c. Both a and b are correct.
d. Neither a nor b are correct.
b
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A firm using Baumol's model will do one of the following if the interest rate on short-term securities went up.
A) increase the collection period B) decrease the average cash balance C) increase the average cash balance D) decrease the collection period
In order to measure gross domestic product, we can follow
A) three approaches: the expenditure approach, the income approach, and the production approach. B) only one approach: the circular flow approach. C) two approaches: the expenditure approach and the income approach. D) only one approach: the national accounts approach. E) three approaches: the expenditure approach, the income approach, and the market-based approach.