Asignement 1 - Exam Name MULTIPLE CHOICE Choose the one...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The Compagnie Naturelie sells mounted butterflies, using butterfly bait it buys from another firm for $20 thousand. It pays its workers $35 thousand, pays $1 thousand in taxes, and has profits of $3 thousand. What is its value added? 1) A) $3 thousand B) $19 thousand C) $39 thousand D) $59 thousand 2) The principle of diminishing marginal productivity implies that 2) A) if we increase labour and capital, the output will eventually decrease. B) if we increase one input while keeping other inputs constant, the output will decrease. C) If we increase one input while keeping other inputs constant, the productivity of variable input will decrease. D) If we decrease labour and capital, the output will decrease. 3) A decrease in the real wage would result in a 3) A) shift of the labour demand curve, causing an increase in the number of workers hired by the firm. B) movement along the labour demand curve, causing a decrease in the number of workers hired by the firm. C) movement along the labour demand curve, causing an increase in the number of workers
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This note was uploaded on 01/22/2011 for the course ECON 211 taught by Professor Jonew during the Spring '09 term at University of Regina.

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Asignement 1 - Exam Name MULTIPLE CHOICE Choose the one...

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