The law of decreasing returns applies to
A) the long-run average cost curve.
B) average total cost.
C) diseconomies of scale.
D) changes in a variable input with a given quantity of fixed inputs.
E) changes in a fixed input with a given quantity of variable inputs.
D
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Suppose an economist claims there are substitutes for wetlands. The person is saying
A) wetlands are of no value. B) wetlands are worth less than their substitutes. C) there is a cost to maintaining a wetland. D) there is a cost to maintaining a wetland, and it is necessarily too high. E) economists don't like wetlands.
Which of the following lists give world exports in the order of their value, from highest to lowest?
a. Aircraft, motor vehicle parts, crude petroleum b. Aircraft, crude petroleum, motor vehicle parts c. Crude petroleum, office and telecom equipments, automotive parts d. Motor vehicle parts, aircraft, crude petroleum e. Motor vehicle parts, crude petroleum, aircraft
A relatively mild period of falling incomes and rising unemployment is called a(n)
a. depression. b. recession. c. expansion. d. business cycle.
In the short run, marginal cost is positive and decreasing at output levels where total variable cost is ________ at a(n) ________ rate.
A. increasing; decreasing B. decreasing; decreasing C. decreasing; increasing D. increasing; increasing