Because of the law of diminishing returns, _____
a. economic growth rate begins to diminish as capital deepening increases
b. GDP per capita decreases as capital per unit of labor decreases
c. the average cost of production decreases as output in an economy increases
d. the marginal cost of production decreases as output in an economy increases
a
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The Great Depression of the 1930s led to a revolution in macroeconomic thinking, following the work of
A. Arthur Laffer. B. Milton Friedman. C. Adam Smith. D. John Maynard Keynes. E. David Ricardo.
The Cold War was of overriding importance during the period after World War II for all of the following reasons except
(a) It was an automatic "pump primer" which helped keep spending levels high in the overall economy. (b) It helped fuel growth of key sectors of the economy, such as aircraft manufacturing and computers. (c) It fostered economic growth and urbanization in many parts of the nation where military bases and defense factories were built. (d) It put people to work who would otherwise have been unemployed because without high levels of defense spending, the economy almost certainly would have lapsed back into a depression like the one of the 1930s.
The inverse supply curve of coffee beans equals P = -5 - 2rain + Qs, where rain equals the number of inches of rain per year. How much does quantity supplied change when rain increases from 30 inches to 40 inches per year?
A) Qs decreases by 40. B) Qs increases by 40. C) Qs increases by 30. D) Qs decreases by 30.
Refer to Figure 7.1. At what level of output are average total cost, average cost, average fixed cost and marginal cost increasing?
A) Q2 B) Q3 C) Q4 D) Q5 E) none of the above