The law of diminishing marginal productivity states that as more units of a variable input are added, holding other inputs constant (ceteris paribus), the additional output obtained from each new unit of the variable input eventually falls.
Answer the following statement true (T) or false (F)
True
This is the way the text explains the law of diminishing marginal productivity.
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An illustration of a non-credible commitment is the promise
a. to not increase capacity in a declining industry b. to match a new entrant's discount price c. to enter a profitable industry d. to restrain output to the quota assigned by a cartel e. to exit in the face of projected losses.
The Reagan tax cut of 1981 was an attempt to: a. stimulate aggregate supply
b. stimulate aggregate demand. c. stabilize the value of the U.S. dollar. d. increase demand for U.S. exports. e. reduce the federal budget deficit.
If policy makers do nothing in response to an inflationary gap, what will happen?
a. a rapid movement toward lower unemployment and higher inflation b. a rapid movement toward lower unemployment and lower inflation c. a slow movement toward higher unemployment and higher inflation d. a slow movement toward lower unemployment and lower inflation
A labor union is similar to a __________
Fill in the blank(s) with correct word