Production indifference curves bow inward toward the graph’s origin because of
A. the law of diminishing returns to a single input.
B. the law of diminishing marginal returns to scale.
C. constant returns to scale.
D. minimizing costs in the short run.
Answer: A
You might also like to view...
If nominal GDP is $230 for a period and real GDP is $200 for the same period, what is the GDP price index for this period?
What will be an ideal response?
An increase in the exchange rate from $2.00 = 1 € to $2.20 = 1 € is a
A) 10% depreciation of the euro with respect to the dollar. B) 10% depreciation of the dollar with respect to the euro. C) 10% appreciation of the dollar with respect to the euro. D) None of the above.
A major side-effect of a stimulative fiscal policy is that it will
A) discriminate in favor of housing. B) crowd out private expenditures. C) increase the natural rate of unemployment. D) permanently raise the rate of inflation.
The price of dishwashers increases dramatically, causing a 1 percent increase in the CPI. The price increase will most likely cause the GDP deflator to increase by
a. more than 1 percent. b. less than 1 percent. c. 1 percent. d. None of the above is correct; this particular price increase will not affect the GDP deflator.