The Law of Diminishing Marginal Returns states that:
A) successive increases in inputs eventually lead to less additional output.
B) successive increases in product prices lead to a fall in revenue.
C) the demand for a good decreases as the price of the good increases.
D) the net benefits of a perfectly competitive firm decrease as more firms enter the market.
A
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Which of the following would cause the demand for loanable funds to increase?
a) A reduction in consumer confidence that causes people to save more. b) A new investment tax credit for businesses to expand. c) A major sporting event in town that causes people to withdrawl money from their bank accounts. d) A reduction in government spending.
Rent controls primarily benefit
A) property owners. B) people looking for rental units. C) builders. D) people who already occupy rental units.
Refer to the information for this hypothetical economy provided in Table 20.1 below to answer the question(s) that follow.Table 20.1 2014 2015 2016QuarterIIIIIIIVIIIIIIIVIIIIIIIVOutput9094981029691888487949087Refer to Table 20.1. In this economy, a peak existed around the
A. third quarter of the year 2014. B. fourth quarter of the year 2015. C. fourth quarter of the year 2014. D. third quarter of the year 2016.
In the above graph it is assumed that investment, net exports, and government expenditures:
A. Are all increasing
B. Vary directly with GDP
C. Vary inversely with GDP
D. Are independent of GDP