The value of the marginal product of labor is equal to the change in
a. marginal cost caused by the addition of the last worker.
b. total cost caused by the addition of the last worker.
c. total revenue caused by the addition of the last worker.
d. total profit caused by the addition of the last worker.
c
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Suppose the economy has no income taxes or imports. How is the size of the expenditure multiplier related to the marginal propensity to consume? What is the multiplier if the MPC equals 0.25? If the MPC equals 0.50? If the MPC equals 0.90?
What will be an ideal response?
Suppose two neighborhoods (A and B) have identical housing, but neighborhood A has a strictly enforced deed restriction that prohibits homeowners from parking junk cars in the front yard
If houses in neighborhood A sell for $105,000 and houses in neighborhood B sell for $100,000, how would an economist value the external cost of visible junk cars, per house? A) $205,000 B) $105,000 C) $100,000 D) $5,000 E) None of the above answers is correct.