The above table shows the short-run total product schedule for the campus book store. When the book store hires the 3rd employee
A) the bookstore is still experiencing increasing marginal returns.
B) the book store has already begun to experience diminishing marginal returns, but average product is still rising.
C) both marginal and average product have already begun to decline.
D) marginal product is at its maximum.
A
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An increase in the marginal propensity to hold money
a. results in an fall in the interest rate and a decline in income. b. raises the interest rate and lowers income. c. results in a fall in the interest rate and a rise in income. d. raises both the interest rate and income.
Rational choice requires that opportunity cost be
a. ignored in making a decision. b. considered for individual choices, but not for societal choices. c. computed, but not actually used in making a decision. d. considered as part of making a decision. e. used as the sole decision criterion.
Which of the following would one expect if there were no trade in goods but resources were free to move among countries?
a. Labor will immigrate from the capitalabundant country. b. Labor will emigrate to the capitalabundant country. c. Labor will emigrate to the capitalscarce country. d. Labor will immigrate from the capitalscarce country.
Total government spending (federal, state, and local) sums to approximately:
A. 10 percent of the U.S. economy. B. 20 percent of the U.S. economy. C. 40 percent of the U.S. economy. D. one-half of the U.S. economy.