According to the law of diminishing returns, as more workers are hired:
a) Marginal utility declines.
b) Marginal physical product declines.
c) Marginal revenue product increases.
d) Opportunity cost increases.
Answer: b) Marginal physical product declines.
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It may be argued that Japan's explicit promotion of its microchip industry was an excellent example of successful industrial policy
What criteria would you apply to determine whether such a policy is or is not successful? Judging from your own stated criteria, was Japan's exercise successful? Why or why not? What information would a government require in order to increase the probability that its industrial policy would promote long term self-generated economic growth?
Usury laws carry the potential of hurting
A. borrowers. B. lenders. C. borrowers and lenders. D. government.
If the production of a product results in significant external costs, an appropriate government policy might be to
A. subsidize consumers since the good is being under-consumed. B. subsidize the production of the good. C. tax consumers' incomes and thus shift the demand curve to the left. D. tax producers and thus shift the supply curve to the left.
Which of the following is NOT an example of a monopolistically competitive market?
A) high fashion clothing B) medical care C) wheat D) automobiles