The principle that if the amount of labor and other inputs is held constant, then the greater the amount of capital in use, the less an additional unit of capital adds to production is called the principle of:
A. increasing returns to capital.
B. diminishing returns to capital.
C. decreasing output per unit of capital.
D. increasing average capital productivity.
Answer: B
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The reason why some economists believe that attempts by the Fed to surprise the public in a systematic way cannot be successful is that
A) information about the Fed's plans will inevitably be leaked to the public. B) the Fed announces its goals before Congress and publishes its policy actions in the Federal Reserve Bulletin six weeks after they take place. C) the public would eventually figure out what the Fed's policies were, negating the Fed's surprise. D) competition in the money markets would neutralize the Fed's intervention.
Frictional unemployment is the result of
What will be an ideal response?
Terry consumes three hamburgers at McDonald's. He figures out that the last hamburger he ate was just worth the price he paid for it. If the price of a hamburger is $1, _____.
a. ?he has a consumer surplus on the third hamburger alone b. ?he has a consumer surplus on the first hamburger c. ?he would have a consumer surplus if he eats one more hamburger d. ?he has no consumer surplus e. ?he has a consumer surplus on the first two hamburgers
A monopoly will price its product:
a. where total revenue is maximized. b. where total costs are minimized. c. at that point on the market demand curve corresponding to an output level in which marginal revenue equals marginal cost. d. at that point on the market demand curve which intersects the marginal cost curve.