Question

Please Explain with Detail.

1. Which of the following can reduce the marginal revenue product of labor?

Select one:

a. A reduction in the demand for firms– products.

b. A reduction in workers– supply of labor to firms.

c. A decrease in firms– demand for inputs that substitute for labor.

d. An increase in the extra output firms gain from adding another unit of labor.

2. The M1 monetary aggregate includes which of the following?

Select one:

a. bank reserves

b. foreign exchange reserves

c. transactions deposits at banks

d. long-term savings deposits at banks

3. Structural interdependence involves interconnectedness of national markets for goods, services, and financial assets causing events in one nation to affect the economies of other nations.

Select one:

a. TRUE

b. FALSE

Answer 1

1)option C is correct

As firm's demand for inputs that substitute labor decreases more amount of labor is employed and when more labor is employed law of diminishing return is applicable and marginal revenue product of labor decreases with increase in more labor employment

2)option C is correct

transaction deposit at bank is checkable deposit which is very liquid and can be used as cash and M1 include most liquid form of money .

3)true

we can understand by an example if income of gulf countries decreases by fall in oil prices than income of European country and American also decreases because gulf countries are market of arms and other good for America and European countries