2. MACRO-CH3-FILL-IN

__________ are the inputs used to produce goods and services.

If a firm hires an additional unit of labor while keeping other inputs constant, its production increases by the ______________

If a firm hires an additional unit of capital while keeping other inputs constant, its production increases by the ________________

The ______________ expresses mathematically how the factors of production determine the amount of output produced.

If we double the amounts of labor and capital and output also doubles, the production function is said to have ______________

Under perfect competition, profit-maximizing firms hire labor until the _____________ equals the real wage.

Under perfect competition, profit-maximizing firms hire capital until the marginal product of capital equals the __________

The ___________ is what a worker is paid (per hour) measured in units of output rather than in dollars.

__________ includes both economic profit and the return to capital.

According to ___________ , if a production function has constant returns to scale and each factor of production is paid its marginal product, then the sum of these factor payments equals total output. Consequently, economic profit equals zero.