A ten percent increase in total factor productivity A will increase ________
A) the marginal product of capital (MPK) by ten percent
B) the marginal product of labor (MPL) by ten percent
C) output by ten percent
D) all of the above
E) none of the above
C
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Public choice theory predicts that
a) voters are rationally ignorant b) voters are fully informed about the effects of policies c) governments make choices that achieve an efficient provision of public goods d) votes are based on reality, not perceptions
Consumer surplus is equal to
A) marginal benefit minus price summed over the quantity consumed. B) price minus marginal benefit summed over the quantity consumed. C) marginal benefit summed over the quantity consumed. D) price multiplied by the quantity consumed. E) marginal benefit plus price summed over the quantity consumed.