When the marginal physical product is falling
A. total costs are falling.
B. average fixed costs are rising.
C. marginal cost is rising.
D. average variable costs are falling.
Answer: C
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A tariff is a tax imposed on ________ good.
A. a luxury B. a domestic C. an illegal D. an imported
Which statement is true of an exogenous variable in an economic model?
A) It has no direct relation to the endogenous variables. B) Its value within the model cannot be changed. C) It is often a policy variable. D) It is explained inside the model. E) All of the above.
Which of the following statements applies to economics, as well as to other sciences such as physics?
a. Experiments are considered valid only when they are conducted in a laboratory. b. Good theories do not need to be tested. c. Real-world observations often lead to theories. d. Economics, as well as other sciences, is concerned primarily with abstract concepts.
Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,275 a ton. Over the same time a measure of the overall price level increased from 150 to 156 . The price of iron ore increased by
a. less than inflation, so it became less scarce. b. less than inflation, so it became more scarce. c. more than inflation, so it became more scarce. d. more than inflation, so it became less scarce.