Question

The additional output produced by hiring an additional unit of labor is known as

		diminishing returns.
		the marginal product of labor.
		the derived demand for labor.
		the productivity of labor.

QUESTION 10

1. A trust is

an arrangement in which the owners of several companies transfer their decision-making powers to a group of trustees.

a cartel.

legal under the Sherman Act.

all of the above

QUESTION 6

1. Tradable pollution permits

		will be sold by firms that have relatively low abatement costs.
		reduce the level of pollution to zero.
		cause each firm to reduce the level of pollution it generates by the same amount.
		are likely to lead to a higher total level of pollution in an area.

QUESTION 1

1. Public-choice economics is

		the field that uses models of rational choice to study how governments operate.
		the right of every citizen to know about the economic status of his/her country.
		the vote of every politician with respect to economics.
		none of the above

Answer 1

a) The additional output produced by hiring an additional unit of labor is known as marginal product of labor. it is change in the output / change in the number of labor. the answer is "B".

b) A trust is an arrangement in which the owners of several companies transfer their decision-making powers to a group of trustees. the answer is "A".

c) Tradable pollution limit is where a firm polluting less can sell those units to the firm polluting more in the are. The answer is "A".

d) "A"

Public choice economics deals with the situation of how the government in the economy operates.