When we calculate the marginal physical product of labor, we assume
a. all resources increase proportionately with the quantity of labor
b. all other resources are held constant (are unchanging)
c. output is fixed (unchanging)
d. the wage rate is fixed (unchanging)
e. the prices of all resources used in production are fixed (unchanging)
B
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Suppose the market for dollars is in equilibrium, then the expected future exchange rate rises. What effect does this change have on the current exchange rate?
A) It will rise. B) It will fall. C) It will remain unchanged. D) Because both the supply and demand curves shift, the effect on the exchange rate is unpredictable.
Many fear that cheap foreign labor will destroy American jobs; in reality, wages in
a. the United States have risen spectacularly in the last 33 years as trade grew. b. countries that export to the United States are very low relative to the United States and show no sign of rising. c. countries that export to the United States have risen spectacularly in the last 33 years. d. United States export industries are very low relative to wages in the same industry in other countries. e. All of the above are correct.