As a fishing firm hires its first, second, and third workers, it could find that marginal product actually rises. The reason for this is:
a. diminishing returns have set in.
b. the division of labor creates greater productivity.
c. the firm has hired another boat.
d. all tasks are shared by all workers.
e. less qualified workers are becoming available.
Question 2
If the price level in the U.S. increases, aggregate output demanded:
a. decreases because U.S. products become cheaper relative to foreign products.
b. decreases because U.S. products become more expensive relative to foreign products.
c. increases because U.S. products become cheaper relative to foreign products.
d. increases because U.S. products become more expensive relative to foreign products.
e. decreases because household wealth and spending increase.
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