The additional revenue associated with hiring one additional unit of some factor input, such as labor, is called
A) marginal cost.
B) marginal revenue product.
C) marginal factor cost.
D) marginal physical product.
Answer: B
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If the Fed wanted to reduce the federal funds interest rate, it might: a. increase the discount rate
b. increase the required reserve ratio. c. buy government securities. d. sell government securities.
In the Historical Perspective "The Corn Laws Controversy in 19th-Century England," the implication of David Ricardo's theory of differential rent is that
a. high rents were the main cause of high food prices in 19th-century England b. price is rent determining; rent is not price determining c. international trade ought to be restricted since it is instrumental in protecting landowners' rents d. land rents are part of the cost of food production e. differential land rents do not exist