The "law" of diminishing returns
a. is deduced from the basic biochemical relationship of agricultural theory.
b. was constructed as the basis of observation during experiments on the impact of fertilizer on output in the 1930s.
c. is based on regular observations of input-output relationships over the last two centuries.
d. is borrowed from physical laws related to conversion of matter and energy.
c
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During a recession,
A) real GDP is less than potential GDP. B) real GDP is equal to potential GDP. C) the actual unemployment rate is less than the natural unemployment rate. D) real GDP is greater than potential GDP. E) the relationship between real GDP and potential GDP no longer exists.
A demand curve shows the relationship between
A) the price of a produce and the demand for the product. B) the quantity that consumers are willing and able to buy and the quantity that sellers are willing and able to offer. C) the price of a product and the quantity of the product demanded. D) the amount of a product sellers are willing to sell at a particular price and the amount consumers are willing to buy at that price.
The U.S. is the world's largest creditor
Indicate whether the statement is true or false
The market demand function for wheat is Qd = 10 - 2P and the market supply function is Qs = 4P - 2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a price support program to achieve their goal. How much wheat must the government buy?
A. 10 billion bushels per year B. 4 billion bushels per year C. 6 billion bushels per year D. None