The law of diminishing marginal returns states that
A) as both labor and capital are increased, output increases at a decreasing rate.
B) output increases at a decreasing rate as more capital is added.
C) output decreases at a constant rate as more capital is added.
D) as both labor and capital are increased, output does not change.
E) output increases at a constant rate as more capital is added.
B
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How does the imposition of a penalty for selling an illegal drug influence demand, supply, price, and the quantity of the drug consumed?
What will be an ideal response?
Refer to the table below. What is the probability of selling exactly 24 cakes?
The above table shows the probability distribution of cake sales at Busy Betty's Bakery.
A) 0.20
B) 0.90
C) 0.00
D) 0.10
Rolnick and Weber point out that a bimetallic standard will not exhibit Gresham's Law if:
a. people are willing to use coins at their market values. b. people are willing to use coins at their face values. c. the government regulates the quantity of each type of coin in circulation. d. paper money circulates along with minted coins.
Wages of doctors tend to be higher than wages of bankers. Which of the following is a compensating differential explaining the difference in wages?
a. Doctors have the stress of being responsible for other peoples' lives while bankers do not. b. Doctors are on call to work nights and weekends, while bankers work traditional business hours. c. Doctors must pay for malpractice insurance in case they are sued for a mistake on the job. d. All of the above are compensating differentials.