The marginal revenue product curve of a factor is negatively sloped because:
a. the additional revenue generated from an additional unit of a factor remains constant as more resources are hired.
b. the additional revenue generated from an additional unit of a factor declines as more resources are hired.
c. the additional revenue generated from an additional unit of a factor usually becomes zero as more resources are hired.
d. the additional revenue generated from an additional unit of a factor increases as more resources are hired.
e. the additional revenue generated from an additional unit of a factor doubles every time new resources are hired.
b
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Economic growth is represented on a production possibilities frontier model by the production possibilities frontier
A) becoming flatter. B) shifting inward. C) becoming steeper. D) shifting outward.
An important problem facing the Fed is that
A) the goals for economic growth and price stability may conflict in the short run. B) it lost effective control over the monetary base. C) it has been given responsibility for meeting policy goals, but true control over monetary policy remains with Congress. D) it has been given responsibility for meeting policy goals, but true control over monetary policy remains with the President.