The law of diminishing marginal returns explains the general shape of the firm's
a. long-run cost curves.
b. short-run cost curves.
c. both short-run and long-run cost curves.
d. The law of diminishing returns has nothing to do with cost curves.
B
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Refer to Figure 9-2. Without the tariff in place, the United States consumes
A) 9 million pounds of rice. B) 15 million pounds of rice. C) 31 million pounds of rice. D) 42 million pounds of rice.
The term ceteris paribus means that
a. everything is changing. b. all variables except those specified are constant. c. no one knows which variables will change and which will remain constant. d. the basic postulate of economics does not apply for the case being considered.
A college student decides to spend the afternoon watching three movies rented from Red Box. The cost of each movie is $1. The student was willing to pay $4 to rent each of the first two movies and $2 to rent the third movie. What was the marginal benefit received by the student when renting the 1st movie?
A. $4 B. $8 C. $1 D. $2
In the short run, an increase in government purchases will
I. shift the aggregate expenditure curve upward. II. increase real GDP. III. increase the government purchase multiplier. IV. increase the lump-sum tax multiplier. A) I, II and III B) I and II C) I and III D) III and IV