Diminishing marginal returns occurs when
A) all inputs are increased and output decreases.
B) all inputs are increased and output increases by a smaller proportion.
C) a variable input is increased and output decreases.
D) a variable unit is increased and its marginal product falls.
D
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________ are one source of involuntary unemployment during recessions
A) Downwardly rigid wages B) Lower corporate tax rates C) Flexible wages D) Higher income tax rates
It is estimated that in 2007, Mexico had a population of 110 million and GDP of $1 trillion. In 2006, Mexico's population was 104 million and GDP was $839 billion. Per GDP person ________ by ________ between 2006 and 2007 in Mexico
A) increased; $1038 B) increased; 5 percent C) decreased; $2013 D) decreased; 5 percent
Provide two microeconomic statements and two macroeconomic statements. Classify your statements as positive or normative, and explain your classifications
What will be an ideal response?
If the demand for gasoline becomes more elastic over time,
A. the demand curve will shift out. B. the demand curve will become flatter. C. other things being equal, the equilibrium price of gasoline must fall. D. other things being equal, the equilibrium quantity of gasoline must fall.