The law of diminishing marginal product shows the relationship
A) between accounting and economic profits.
B) between short-run and long-run outputs of a firm.
C) between inputs and outputs for a firm in the short run.
D) between inputs and outputs for a firm in the long run.
Answer: C
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According to the graph shown, the government can restrict trade by imposing a quota of:
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
A. 350.
B. 900.
C. 1150.
D. 1500.
Some antitrust laws address situations involving _______________, where even though there are no outright agreements to control prices or production, the result might still be to reduce competition.
a. restrictive practices b. mergers and acquisitions c. price wars d. union contracts
Which of the following is an explanation for why the AD curve slopes downward?
A. The interest rate effect. B. The laissez faire effect. C. The cost effect. D. The profit effect.
A $100 million decrease in government expenditure on goods and services leads to an even larger decrease in aggregate demand because of
A) induced changes in consumption expenditures. B) automatic fiscal policy. C) induced changes in aggregate supply. D) discretionary fiscal policy. E) the reinforcing effect of monetary policy.