Assume that a manufacturer of stereo speakers purchases $40 worth of components for each speaker. The completed speaker sells for $70. The value added by the manufacturer for each speaker is:

All else equal, as the labor supply increases, the marginal product of labor will

A) increase at an increasing rate. B) increase at a decreasing rate. C) decrease at an increasing rate. D) decrease at a decreasing rate.

For automobile demand in the U.S., the income response tends to be larger in the:

A) short run. B) long run. C) The income response is the same in the long run and the short run. D) We do not have enough information to answer this question.