Diminishing marginal returns occur in the short run.
Answer the following statement true (T) or false (F)
True
You might also like to view...
The stabilization policies of government are most likely to promote
A) high employment. B) price stability. C) reduced aggregate fluctuations. D) the interests of those who plan and execute them. E) the interests of the majority of voters.
Classical growth theory proposes that real GDP growth is ________ and that real GDP per person will ________ the subsistence level
A) permanent; temporarily be above B) permanent; always be above C) temporary; temporarily be above D) temporary; be above and below
Once a new technology spreads and is adopted by many countries:
A. the first country to use it may lose its comparative advantage. B. the first country to use it will lose its absolute advantage. C. other countries will perfect it, putting them at an absolute advantage. D. the country will have to have strict intellectual property rights protections in place.
If a price floor is not binding, then
a. the equilibrium price is above the price floor. b. the equilibrium price is below the price floor. c. there will be a surplus in the market. d. there will be a shortage in the market.