Answer the following statements true (T) or false (F)
1. When the total product is at its maximum level, the marginal product is zero.
2. hen total product is increasing at a decreasing rate, marginal product is positive, but falling.
3. The short-run marginal-cost curve is upward-sloping because of the law of diminishing marginal returns.
4. Marginal product is highest where marginal cost is lowest.
5. When a firm increases its output, its average fixed costs will stay constant.
1. TRUE
2. TRUE
3. TRUE
4. TRUE
5. FALSE
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Equalization of resources across school districts would be less of a concern if _____
a. there was no link between spending and achievement b. there was a strong link between spending and achievement c. classroom teachers were better paid d. taxpayers were willing to spend more
Why do economists predict that investment increases when the real rate of interest falls?
What will be an ideal response?
Which antitrust act prohibits exclusive dealing, tying contracts, stock acquisitions, and interlocking directorates?
a. Sherman Antitrust Act of 1890. b. Clayton Act of 1914. c. Federal Trade Commission Act of 1914. d. Robinson-Patman Act of 1936. e. Cell-Kefauver Act of 1950.
How do future expectations about the price of a good affect the present supply?
(A) If the price is expected to decrease, many producers will hold onto their supply. (B) If the price of a related good is expected to increase, only a few sellers will hold onto their supply until the increase occurs. (C) If the price is expected to increase, many producers will hold onto their supply. (D) If the price is expected to increase and then decrease, most sellers will hold onto their supply until the decrease has occurred.