Diminishing returns refers to the decrease in
A. average total cost that results from decreases in input prices.
B. long-run average cost that results from increases in output.
C. profit that results from increases in output.
D. marginal product that results from increases in the variable input.
E. average product that results from increases in the variable input.
Answer: D
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The money demand curve will shift to the left if:
A. the price level decreases. B. the nominal interest rate decreases. C. the nominal interest rate increases. D. the price level increases.
The level of GDP at which planned expenditure equals the amount of output produced is the
A) equilibrium output. B) potential output. C) long-run output. D) autonomous output.
Of the following market structures, which is the most competitive?
A) perfect competition B) monopolistic competition C) monopoly D) oligopoly
Which of the following is not "crowded out" by higher interest rates as a result of expansionary fiscal policy?
A) net exports B) private investment C) consumption D) government spending