According to the principle of diminishing returns, if the number of workers is increased beyond the point of diminishing returns, then the additional worker:
A. increases total output by the same amount as previous workers.
B. increases total output by more than the amount of previous workers.
C. increases total output by less than the amount of previous workers.
D. decreases total output.
Answer: C
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If the inflation rate in an economy is 5 percent and the income earned by workers increases by 5 percent, then _____
a. nominal income declines and real income increases b. both nominal income and real income increase by 5 percent c. nominal income increases and real income declines d. both nominal income and real income decrease by 5 percent e. nominal income increases by 5 percent and real income is unchanged
Which of the following is not a reason why aggregate demand decreased following the housing bubble collapse?
A. People stopped investing in homes. B. Consumption decreased. C. Business investment decreased. D. Costs of production increased throughout the economy.
As a result of the government procurement policy in the U.S.:
a. the domestic consumers are required to pay a higher price than the government for the domestically produced goods. b. the government wields the sole authority of importing goods from abroad. c. the government wields the sole authority of exporting goods. d. the government is required to buy the domestic goods if the domestic price is less than the world price. e. the government is required to sponsor research and development for the domestic firms.
Which of the following is the best example of an oligopolistic industry?
A. convenience stores B. smartphone manufacturing C. public utilities D. book publishing