An increase in foreign investment in Brazil's mining industry will increase the capital stock in Brazil. All else equal, as the capital stock increases, the marginal product of capital (MPK) will
A) increase due to diminishing marginal returns.
B) decrease due to diminishing marginal returns.
C) increase since capital is not subject to diminishing marginal returns.
D) decrease since capital is not subject to diminishing marginal returns.
B
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The demand for a resource is derived from the consumer demand for the good or service produced by the resource
a. True b. False
Psychological research shows that choices that involve ___________ are likely to turn out worse than those involving __________.
A. complicated information; simple information B. simple information; complicated information C. low payoffs; high payoffs D. high payoffs; low payoffs
Economists do not agree on why wages are more rigid now than they were before World War II
a. True b. False Indicate whether the statement is true or false
When GDP is calculated as the final demand for goods and services by consumers, businesses, governments, and foreigners, then GDP is measured by
A. the sum of all value added. B. the sum of all productive resource inputs. C. the sum of all factor payments. D. the sum of final goods and services.