We assume that when a firm hires additional workers, the marginal physical product of labor will
A) increase because more workers can always get more work done.
B) decrease because the new workers are likely to be less able than the previously hired ones.
C) decrease because each worker now has less capital and other resources to work with.
D) increase because large firms are more efficient.
Answer: C
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In the figure above, the ________ gap is one trillion dollars. To close the gap, the government can ________ government expenditure and/or ________ taxes
A) recessionary; increase; decrease B) inflationary; decrease; increase C) inflationary; increase; increase D) recessionary; decrease; decrease E) recessionary; decrease; increase
A time-series graph displays the price of copper. The slope of the line is negative for periods when the
A) price of copper is falling. B) price of copper is rising. C) quantity of copper is falling. D) price of copper is low and not changing.