If each additional unit of capital increases a firm's yearly output by a smaller amount than the previous unit of capital, and other inputs are held constant, then the firm is experiencing
a. diminishing returns to scale
b. negative marginal productivity of capital
c. diminishing marginal productivity of capital
d. capital depreciation
e. diminishing marginal productivity of labor
C
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Inflation is a tax because as the government ________ the quantity of money, the price level ________, and the purchasing power of households' money ________
A) does not change; rises; increases B) increases; rises; increases C) decreases; falls; decreases D) increases; rises; decreases E) decreases; rises; decreases
Consider the hypothetical supply and demand of Kidneys.
Suppose Kidneys cannot be sold, only donated (price is zero). How many kidneys are donated in this hypothetical situation?
A. 0
B. 900
C. 2000
D. 1200
All of the following are economic explanations for why shopping carts have gotten bigger over the years.
a. more women in the marketplace have made spending time in the grocery store more costly. b. grocery stores now have a wider variety of items available. c. store owners are "tricking" customers in into buying more groceries by making them feel ashamed that their carts are not full. d. shoppers have become wealthier over the years and are willing to pay for the luxury of wide aisles and the big carts that go along with wider aisles.
According to the Keynesian transmission mechanism (and assuming there is no liquidity trap and investment is not interest insensitive), if the money supply increases, the interest rate __________, investment spending __________ and the AD curve shifts to the __________
A) falls; falls; left B) rises; rises; right C) falls; rises; left D) falls; rises; right E) rises; falls; right