In which zone does the total physical product reach it maximum value?
A. Increasing marginal return
B. Negative marginal return
C. Diminishing marginal return
D. Decreasing total physical product
Answer: C
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The theory of oligopoly provides another reason that free trade can benefit all countries because
a. increased competition leads to larger deadweight losses. b. as the number of firms within a given market increases, the price of the good decreases. c. as the number of firms within a given market increases, the profit of each firm increases. d. All of the above are correct.
The production function in the table below exhibits decreasing marginal returns to capital over what output range? Production Function for Good XL*KQMPK=(?Q/?K)APK=(Q/K)LaborCapitalOutputMarginal Product of CapitalAverage Product of Capital900----910575.75.7092032426.716.2093065733.3B9401,07241.526.809501,52445.230.489601,97645.232.939702,39141.534.169802,72433.334.059902,991A33.2391003,0485.730.4891103,016-3.227.4291202,945-7.124.54
A. Between 0 and 1,524 B. Between 3,016 and 2,945 C. Between 0 and 2,991 D. Between 2,391 and 3,048
How does the calculation of GDP include the costs of natural resource depletion that occurs when output is produced?
A. The value of resource depletion is added to GDP. B. The cost of resource depletion is not measured in GDP. C. The cost of resource depletion is added to real but not nominal GDP. D. Resource depletion causes GDP to overstate well-being.
The substitution effect argues that a consumer
A) will always use the additional purchasing power from a price decrease to purchase more of both goods. B) will not purchase more of a good when its price falls. C) will purchase more of a good that has become relatively cheaper, and less of a good that has become relatively more expensive. D) will purchase less of both goods if his or her real income increases.