If the law of diminishing returns applies to labor then
A) the marginal product of labor must eventually become negative.
B) the average product of labor must eventually become negative.
C) the marginal product of labor must rise and then fall as employment rises.
D) the average product of labor must rise and then fall as employment increases.
E) after some level of employment, the marginal product of labor must fall.
E
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An increase in net taxes (taxes paid by the private sector to the government less transfer payments and interest payments made by the government to the private sector) will:
A. increase private saving. B. increase public saving. C. decrease public saving. D. reduce investment in new capital equipment.
What best describes the impact of the cotton gin?
a. A decrease in the price and an increase in the quantity of cotton. b. An increase in the price and a decrease in the quantity of cotton. c. Decreases in both the price and quantity of cotton. d. Increases in both the price and quantity of cotton.
Scarcity exists because
A) there is a temporary disruption in the market supply. B) there is a shortage of goods caused by a natural disaster. C) there are not enough resources available to produce all the goods that people want. D) there is a shortage of labor throughout the world.
If banks do not have enough reserves to satisfy the reserve requirement, they can borrow additional reserves in the federal funds market.
Answer the following statement true (T) or false (F)