When a firm's marginal productivity declines as output increases, then the firm is experiencing
a. Diminishing returns to scale
b. Constant returns to scale
c. Increasing returns to scale
d. Increasing marginal product
a
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A newspaper headline reads: "Fed Cuts Federal Funds Rate for Fifth Time This Year." This headline indicates that the Federal Reserve is most likely trying to ________.
A. ease monetary policy B. tighten monetary policy C. raise interest rates D. reduce inflation in the economy
What determines how much labor a household will supply?
What will be an ideal response?
If the demand for a product increases and the supply of the same product decreases, the equilibrium price will increase
Indicate whether the statement is true or false
If the federal government tries to make fiscal policy sustainable by increasing taxes on wages, the opportunity cost of leisure will ________ and will result in ________ potential GDP
A) increase; lower B) decrease; higher C) decrease; lower D) increase; higher