The "Law of Diminishing Marginal Returns" could also be termed the "Law of Increasing Marginal Costs."
Indicate whether the statement is true or false
True . Since MC = w/MPL in the short run, the fact that MPL eventually declines means that MC must eventually increase.
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The average propensity to consume (APC) is
A) the rate at which real consumption spending changes over time. B) the percentage of real disposable income saved. C) the percentage of additional real disposable income that will go toward additional consumption spending. D) the percentage of real disposable income consumed.
Ensuring that high-quality public education is freely available to all children is one of the most important ways that a country can:
A. increase its stock of human capital. B. decrease its stock of human capital. C. decrease its productivity. D. increase its foreign direct investment.
The output expansion effect of the sale of a firm's last ?Q units of output is:
A. the additional revenue from selling ?Q units at price P(Q). B. the reduced revenue from selling (Q - ?Q) units at a lower price of P(Q). C. the additional revenue from selling ?Q units at price P(Q + ?Q). D. the reduced revenue from selling (Q - ?Q) units at a lower price of P(Q - ?Q).
GDP equals the value added by producers of:
A. intermediate goods and services, as well as final goods and services. B. intermediate goods and services only. C. final goods and services only. D. intermediate and final goods only.