As units of input are added to the production process, the marginal product
a. increases throughout.
b. at first increases, then eventually decreases.
c. remains the same.
d. declines then rises.
b. at first increases, then eventually decreases.
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When the supply of a good is represented by a horizontal line, the burden of a tax is: a. shared equally between the buyers and the sellers. b. placed entirely on the buyers
c. placed entirely on the sellers. d. more on the buyers than on the sellers.
If the banking system has a required reserve ratio of 25 percent, the money multiplier is
A. 0.25. B. 1.25. C. 0.2. D. 4.0.
A balanced budget is present when:
A. the economy is at full employment. B. the actual level of aggregate spending equals the planned level of spending. C. public sector spending equals private sector spending. D. government revenues equal government expenditures.
Briefly explain the Heckscher-Olin (H-O) Theory.
What will be an ideal response?