When the marginal product of labor increases as the amount of labor employed increases,
a. the additional worker has made other workers more productive
b. the firm also must have increased the amount of capital
c. the firm is experiencing economies of scale
d. there has been an improvement in the available technology
e. the law of diminishing returns has been violated
A
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Most foreign exchange is bought and sold
A) by governments. B) by tourists. C) in over-the-counter markets. D) on the New York Stock Exchange.
The first priority of national defense spending is the defense of economic interests abroad
a. True b. False
Protectionism arises because
a. people misunderstand the benefits of free trade b. trade generally harms some groups in society c. the costs of free trade outweigh the benefits for all groups in society d. the costs of trade for both exporting and importing nations outweigh the benefits e. of a lack of comparative advantage
Which of the following pairs of goods is the best example of substitute goods?
a. Borden's milk and Nabisco cookies b. Goodyear tires and Ford automobiles c. Exxon gasoline and Ford automobiles d. McDonald's Big Mac and Wendy's grilled chicken sandwich e. Dell computers and Microsoft software