A firm produces its product using both capital and labor. When it does not change its capital usage, but doubles its labor input, its output increases by less than 50 percent. Which of the following is the most likely explanation of this finding?
A) the principle of opportunity cost B) the spillover principle
C) the principle of diminishing returns D) the marginal principle
C
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If residents of the United States give more gifts to relatives abroad than they receive, unilateral transfers will be
A) positive. B) unaffected. C) negative. D) zeroed out.
Unemployment caused by people voluntarily quitting work in order to seek more attractive employment is called:
a. the natural rate of unemployment. b. full employment. c. cyclical unemployment. d. frictional unemployment. e. structural unemployment.
Which of the following could be responsible for a decrease in the price of wheat?
a. an increase in the supply of wheat b. an increase in the demand for wheat c. a decrease in the demand for wheat d. Either a. or c. could decrease the rice of wheat.
Price discrimination is related to elasticity because:
A. the firm can increase revenues by charging customers with elastic demands higher prices and charging customers with inelastic demands lower prices. B. the firm can increase revenues by charging customers with elastic demands lower prices and charging customers with inelastic demands higher prices. C. the firm can increase revenues by charging all customers higher prices. D. None of these; elasticity and price discrimination are unrelated.