The law of diminishing marginal returns
A) implies that the marginal product of labor must fall.
B) requires using superior technology to increase output.
C) means that total output will always fall.
D) None of the above.
A
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Refer to Figure 2-1. ________ is (are) inefficient in that not all resources are being used
A) Point A B) Point B C) Point C D) Points A and C
When the price level falls from 135 to 120, the aggregate level of GDP supplied falls from $140 billion to $125 billion. This ________ relationship represents the ________ relationship between GDP and the price level
A) positive; long-run B) negative; short-run C) negative; long-run D) positive; short-run
A price ceiling will increase the amount that is traded in the market while a price floor will reduce the amount that is traded in the market
Indicate whether the statement is true or false
One can say with certainty that equilibrium price will decline when supply:
A. and demand both decrease. B. increases and demand decreases. C. decreases and demand increases. D. and demand both increase.