The law of diminishing returns explains why
a. monopolies have a guaranteed profit margin
b. short-run MC and AVC curves are U-shaped
c. the production possibilities curve is bowed out
d. long run supply curves are downward sloping
e. total product is a straight line
B
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Compared to 1929, total output per person in the U.S. today is approximately ________ times larger.
A. 15 B. 2 C. 25 D. 5
As a means of motivating research and development, a patent may stimulate either too much or too little research, relative to the socially optimal level
Indicate whether the statement is true or false
The law of demand implies that the demand curve
A) has a negative slope. B) has a positive slope. C) shifts to the right when the price of a good increases. D) shifts to the left when the price of a good decreases.
If a Central Bank wishes to increase the supply of money, it should:
(a) Reduce the reserve requirement; (b) Reduce the rate of discount (Bank rate); (c) Buy government bonds in the money market; (d) Do any, or all, of the above.