The decreasing slope of a production function reflects
A) diminishing returns.
B) rising unemployment.
C) decreasing costs.
D) increasing aggregate demand.
A
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Max has allocated $100 toward meats for his barbecue. His budget line and indifference map are shown in the above figure. If Max is currently at point d,
A) his MRS is larger than the trade-off offered by the market. B) he is willing to give up more chicken than he has to, given market prices. C) he is not maximizing his utility. D) All of the above.
How does the federal government avoid the asymmetric information problem associated with providing health care to people over 65 years of age?
A) Health care is standardized and is the same for all people over 65 years of age. B) Health insurers rely on the reputation of the covered individuals. C) Participation in the Medicare program is mandatory for all people over 65 years of age. D) Health information about people enrolled in the Medicare program is publically available.
As a general rule, consumers have
a. limited income. b. unlimited desires for goods. c. many choices of goods facing them. d. All of the above are correct. e. None of the above are correct.
An increase in market demand will cause an increase in industry output in the long run because
a. new firms enter the industry. b. new firms enter the industry and all firms increase their output. c. all firms decrease their output but more new firms enter. d. no firms enter but the existing firms increase their output.