The law of increasing additional cost exists because
A) resources are not perfectly adaptable to both production processes.
B) the demand for the product increases.
C) the cost of resources of the products increase.
D) the cost of resources of the products decrease.
A
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Assume the government is concerned about the high price of Atlantic Red Crab and announces that it is going to shorten the fishing season to one week
What impact will this have on the quantity of crab caught and the price of crab? Will this actually result in greater protection of the Atlantic Red Crab?
The balance of payments constraint refers to the limits on:
A. exchange rate policy imposed by flexible exchange rates. B. currency convertibility observed in most developing countries. C. domestic macroeconomic policy, arising from a shortage of international reserves. D. macroeconomic policy resulting from IMF conditionality.
Marginal product:
A. diminishes at all levels of production. B. may initially increase, then diminish, but never become negative. C. may initially increase, then diminish, and ultimately become negative. D. is always less than average product.
The difference between gross public debt and net public debt is that
A. net public debt is expressed in real terms while gross public debt is expressed in nominal terms. B. gross public debt is held by individuals while net public debt is held by the government. C. gross public debt includes interagency borrowing while net public debt does not. D. net public debt includes interagency borrowing while the gross domestic product debt does not.