Which of the following statements is true?
A) The average product of labor is at its maximum when the average product of labor equals the marginal product of labor.
B) The average product of labor tells us how much output changes as the quantity of workers hired changes.
C) The average product of labor is at its minimum when the average product of labor equals the marginal product of labor.
D) Whenever the marginal product of labor is greater than the average product of labor the average product of labor must be decreasing.
A
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The cross-price elasticity of demand for peanut butter with respect to the price of jelly is -0.3. If we expect the price of jelly to decline by 15%, what is the expected change in the quantity demanded for peanut butter?
Correct! +4.5% -4.5% +15% +45%
An increase in government spending
a. increases the interest rate and so investment spending increases. b. increases the interest rate and so investment spending decreases. c. decreases the interest rate and so increases investment spending increases. d. decreases the interest rate and so investment spending decreases.