For a perfectly competitive industry, diminishing marginal returns
A. occur only in the long run.
B. occur in both the short run and in the long run.
C. occur only in the short run.
D. Diminishing marginal returns do not occur in perfectly competitive industries.
Answer: C
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If the world terms of trade equal those of country H, then
A) country H but not country F will gain from trade. B) country H and country F will both gain from trade. C) neither country H nor F will gain from trade. D) only the country whose government subsidizes its exports will gain. E) country F but not country H will gain from trade.
As firms hire additional units of labor, eventually the marginal revenue product will always increase.
Answer the following statement true (T) or false (F)
Ralph Nader has long argued that large corporations in oligopolistic markets should use their vast productive powers to redress social ills. Implementing this policy may put companies:
A. in conflict with its trade unions. B. in conflict with their international policies. C. in conflict with the government. D. in conflict with the process of wealth maximization.
Suppose you were to hear an economist oppose the minimum wage on the grounds that she estimated the loss to small businesses and to the unemployed and found that it exceeded the gain to workers getting a higher wage. You would know her to be relying on the ________ argument.
A. consumer and producer surplus B. macroeconomic C. elasticity D. work effort