As a fishing firm hires its first, second, and third workers, it could find that marginal product actually rises. The reason for this is:

a. diminishing returns have set in.
b. the division of labor creates greater productivity.
c. the firm has hired another boat.
d. all tasks are shared by all workers.
e. less qualified workers are becoming available.


b

Economics

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Consider the above figure. If the aggregate demand curve rose from AD1 to AD3, our nation would be experiencing

A. falling prices. B. a recessionary gap. C. unemployment. D. an inflationary gap.

Economics

Antitrust cases that are brought to the courts by the Justice Department typically rely on perfect competition as a benchmark for lawyers to determine whether a firm is competitive or monopolistic

Why is this a troublesome criterion to use in prosecuting such cases?

Economics

Which of the following observations would be consistent with the imposition of a binding price floor on a market? After the price floor becomes effective,

a. a smaller quantity of the good is bought and sold. b. a larger quantity of the good is demanded. c. a smaller quantity of the good is supplied. d. the price falls below the equilibrium price.

Economics

Net capital outflow measures the imbalance between the amount of

a. foreign assets held by domestic residents and domestic assets held by foreign residents. b. foreign assets bought by domestic residents and the amount of domestic assets bought by foreigners. c. foreign assets bought by domestic residents and the amount of domestic goods and services sold to foreigners. d. None of the above is correct.

Economics