As a firm hires more workers, holding the amounts of capital and other inputs constant,
A. output increases at a decreasing rate.
B. output increases at an increasing rate.
C. output increases at a constant rate.
D. output increases, but we can't be certain whether output increases at an increasing or a decreasing rate.
Answer: A
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Which of the following is a TRUE statement?
A) The most important source of economic growth is the rate of population growth since a growing population stimulates demand for goods and services, and provides the labor to produce the goods and services. B) The most important sources of economic growth are the new ideas generated by entrepreneurs in an economic system that permits them to capture the rewards of their entrepreneurial activities. C) The most important sources of economic growth are the quantity and quality of the land and other natural resources a country controls. D) The most important source of economic growth is the extent to which the government directly enters into decisions where research and development activities should be directed and who should be involved in research and development activity.
The rule of equating marginal benefit with marginal cost is proper for economics, but it does not describe the way in which people make non-economic decisions.
Answer the following statement true (T) or false (F)
The poverty rate for those over age 65 exceeds the rate for those under 18
Indicate whether the statement is true or false
A decrease in aggregate demand will have no effect on the real equilibrium GDP of the economy and will lower its price level in the long run.
Answer the following statement true (T) or false (F)