As the amount of a variable input increases, while all other inputs are held constant, total product will
A. always increase.
B. initially increase and then decrease.
C. initially decrease and then increase.
D. always decrease.
Answer: B
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If Asian economies suffer a serious economic slump, U.S. net exports will
A. increase and AD will shift outward. B. increase and AD will shift inward. C. decrease and AD will shift inward. D. decrease and AD will shift outward.
If economic costs outweigh benefits from joining a currency union, a nation may still choose to join because of:
A) political pressure from the large nations. B) large political benefits. C) the fear of floating. D) the ability to limit imports.
Exhibit 8-3 Cost per unit curves
In Exhibit 8-3, if the price of the firm's product is $2.00 per unit, the firm will produce:
A. 5 units per day. B. 10 units per day. C. 15 units per day. D. 20 units per day.
An absolute price elasticity of demand equal to 2 indicates that a
A. 1 percent increase in price leads to a 2 percent decrease in quantity demanded. B. 10 percent decrease in price leads to a 2 percent increase in quantity demanded. C. 2 percent increase in price leads to a 10 percent decrease in quantity demanded. D. 0.2 percent decrease in price leads to a 1 percent increase in quantity demanded.