When the marginal product of an input declines as the quantity of that input increases, the production function exhibits
a. increasing marginal product.
b. diminishing marginal product.
c. diminishing total product.
d. Both b and c are correct.
b
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The Ricardo-Barro effect is based on the idea that ________ when the government has a budget deficit
A) investment demand increases because expected future profits increase B) people decrease their private saving C) investment demand decreases because of the higher real interest rate D) people immediately increase their tax payments E) people increase their private saving
In the above figure, Brendan originally consumes at point A. If his income rises and both compact discs and haircuts are normal goods then he will begin consuming at a point such as
A) F. B) B. C) C. D) D.
Which of the following would cause the demand curve for yen to shift as indicated in Figure 17-5 above?
a. A decrease in the U.S. price level. b. An increase in the U.S. interest rate. c. An increase in Japanese real GDP. d. An increase in U.S. real GDP. e. A decrease in U.S. real GDP.
Because of scarcity,
A.) choices must be made. B.) there are not enough goods and services to satisfy everyone. C.) there are plenty of goods to go around. D.) Both A and B are true.