After Suzie, owner of Suzie's Sweet Shop, hires her 8th worker the average product of labor declines. Which of the following statements must be true?
A) The average product of labor is negative.
B) The marginal product of the 8th worker is negative.
C) The marginal product of the 8th worker is less than the average product of labor before the 8th worker was hired.
D) Suzie's profits would be greater if she did not hire the 8th worker.
C
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Consider the indifference maps shown above. If X and Y are perfect substitutes, your indifference curves between them would look like those in
A) Figure A. B) Figure B. C) Figure C. D) Figure D.
One of the advantages of floating exchange rates is that:
a. consumers always know how much imported goods cost. b. businesses always know, in advance, what future exchange rates will be. c. countries are free to pursue their own macroeconomic policies without maintaining exchange rates. d. countries cannot act independently and must thus coordinate their macroeconomic policies. e. the global interest rate tends to decline to the lowest possible level.