When a firm increases its capital usage
a. the total product curve can be expected to fall.
b. the total product curve can be expected to rise.
c. the marginal product of labor always rises.
d. the marginal product of labor always falls
b. the total product curve can be expected to rise.
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For a given quantity, the total profit of a perfectly competitive firm is equal to the vertical distance between the firm's total revenue curve and its total cost curve
Indicate whether the statement is true or false
Which of the following is a TRUE statement about the relationship between the price of bonds and the interest rate?
A) The prices of bonds are directly related to the interest rate. B) The prices of bonds increase when the interest rates rise. C) The prices of bonds are unrelated to the interest rate. D) The prices of bonds are inversely related to the interest rate.
For an economy, aggregate demand equals:
a. consumption plus investment plus government spending plus exports. b. consumption plus investment plus government spending plus (exports minus imports). c. consumption plus investment plus (taxes minus transfers) plus (exports minus imports). d. consumption plus investment plus government spending plus net exports (imports minus exports).
In the absence of environmental protection laws, firms pollute because:
A. business owners do not believe that pollution is a problem. B. controlling emissions costs money, thereby reducing profits. C. business owners follow different norms than do environmentalists. D. the cost pollution imposes on society is small relative to the cost of reducing pollution.