The principle that "as one input increases while the other inputs are held fixed, output increases at a decreasing rate" is known as the
A) marginal principle. B) principle of diminishing returns.
C) principle of opportunity cost. D) spillover principle.
B
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Refer to Figure 3-5. In a free market such as that depicted above, a shortage is eliminated by
A) a price decrease, decreasing the supply and increasing the demand. B) a price increase, increasing the quantity supplied and decreasing the quantity demanded. C) a price increase, increasing the supply and decreasing the demand. D) a price decrease, decreasing the quantity supplied and increasing the quantity demanded.
Refer to the above table. You are given information on Jasmin's consumption for 2005 and 2015. Using 2005 as the base year, compute the price index for 2015. The index equals
A) 1.5. B) 70.588. C) 141.667. D) 107.143.
If demand is unit elastic, an increase in price will lead to an increase in total revenue
Indicate whether the statement is true or false
When all currencies are tied directly to gold, then
A. the price of each nation's currency in terms of gold is flexible. B. currency exchange rates throughout the world are flexible. C. currency exchange rates throughout the world are fixed. D. the world's stock of gold cannot change.