In a simple lawn-mowing business where you have a push mower and labor as input, what would be the impact on output of adding an additional input in the form of a gas self-propelled mower (capital)?
A. Labor would decrease.
B. Output would decrease.
C. Output would remain the same.
D. Output would increase.
Answer: D
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An increase in the purchasing power of money would not, on average, result in an increase in the purchasing power of people's income because a ________ price level would likely mean ________ wages and salaries
A) falling; rising B) rising; falling C) falling; falling D) rising; rising
An increase in price:
A. cannot cause a quantity effect. B. cannot cause a price effect. C. causes a decrease in revenue resulting from selling fewer units and a simultaneous increase in revenue resulting from receiving a higher price. D. causes an increase in quantity demanded.
The convergence hypothesis states that international differences in real GDP per capita tend to _____ over time.
A. diverge B. fluctuate C. remain constant D. narrow
An increase in government spending can raise wages and prices in the short term.
Answer the following statement true (T) or false (F)