To a firm facing constant input prices, increasing marginal returns
a. means that each additional unit of output costs more to produce than the previous unit
b. means that the marginal product of the variable input decreases as more of the input is used
c. can occur due to specialization and division of labor
d. usually occur at very high rates of output
e. can never occur
C
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The exchange rate converts
a. one currency value to another b. labor units to output units c. miles to kilometers d. physical capital units to human capital units e. none of the above
If the rate of increase in the price level exceeds the rate of increase in nominal GDP, real GDP declines
a. True b. False Indicate whether the statement is true or false
Pair-wise majority voting entails:
A. voting on options that is done in pairs, and the majority vote wins. B. one vote with many options, and the option with the most votes wins. C. voters ranking all available options and the option most approved of wins. D. None of these describes pair-wise majority voting.
An decrease in Italy's interest rate and an decrease in Italy's price level relative to U.S. price level have the same effect on the exchange rate between the two countries.
Answer the following statement true (T) or false (F)