Which of the following statements is true?
A. Diminishing marginal returns sets in after marginal product intersects average product
B. Diminishing marginal returns means that in order to increase output at a constant rate, the firm must add larger and larger quantities of the variable inputs
C. Diminishing marginal returns implies that there will never be increasing returns to scale
D. Diminishing marginal returns implies that the firm's profits will be shrinking
B. Diminishing marginal returns means that in order to increase output at a constant rate, the firm must add larger and larger quantities of the variable inputs
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In the multiple-polluter case, each firm faced with an emission charge imposed as a marginal tax (MT) abates as long as
a. its MAC
How does a reduction in the price level affect the position of the C + I + G + X curve and in turn the equilibrium level of real GDP?
A) The C + I + G + X curve shifts down, thereby reducing the equilibrium level of real GDP. B) The C + I + G + X curve shifts down, thereby increasing the equilibrium level of real GDP. C) The C + I + G + X curve shifts up, thereby reducing the equilibrium level of real GDP. D) The C + I + G + X curve shifts up, thereby increasing the equilibrium level of real GDP.
Even though international trade is more complicated, supply and demand are still at the center of the price determination mechanism
a. True b. False Indicate whether the statement is true or false
If the real interest rate is 2 percent and inflation rate is 1 percent, what is the nominal interest rate?
A. 1 percent B. 0 percent C. 2 percent D. 3 percent