Gertrude Stork's Chocolate Shoppe normally employs 4 workers. When the Chocolate Shoppe hired a 5th worker the Shoppe's total output decreased. Therefore
A) the total output of Gertrude Stork's Chocolate Shoppe is negative.
B) the average product of the 5th worker is negative.
C) the 5th worker should be hired only if he is willing to accept a wage lower than the wage paid to the other 4 workers.
D) the marginal product of the 5th worker is negative.
D
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Refer to Figure 4-10. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What is the quantity of apartments demanded at the new price?
A) Q1 B) 0 C) Q0 D) Q*
Answer the following statements true (T) or false (F)
1. If the newspapers report that there is a shortage of strawberries, it must mean that the current price of strawberries is below the equilibrium price. 2. If there is a surplus in a market, competition among the sellers will drive price down. 3. If we observe that the price of gold is rising and the quantity of gold traded in the market is falling, then this must be the result of an increase in the supply of gold. 4. When the government requires ethanol from corn to be used as an additive to gasoline, the supply of corn decreases.