Diminishing marginal productivity implies that a proportional increase in all inputs will produce a less than proportional increase in output.
Answer the following statement true (T) or false (F)
False
Diminishing marginal productivity implies that increasing one input will result in smaller increases in output, holding other inputs constant. Decreasing returns to scale implies that increasing all inputs will result in smaller increases in output.
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If the percentage increase in the quantity supplied is smaller than the percentage increase in the price, the supply:
A. is elastic. B. is inelastic. C. is perfectly elastic. D. is unit elastic.
Carve-out accounts
A. applies only to workers between 65 and 69 years of age. B. take funds away from the traditional social security system. C. has a tax rate of no more than 16.9 percent. D. all of these answer options are correct.
A country is likely to be better off in the long run if it pursues self-sufficiency
Indicate whether the statement is true or false
Which of the following might be a method that the government could use to correct a negative externality?
A) an effluent fee on waste from the production of goods that create negative externalities B) government subsidies to producers of goods that create negative externalities C) financing additional production of goods that create negative externalities D) encouraging overallocation of resources of production of goods that create negative externalities