A negative value for the marginal physical product would indicate that
A. total output increased by a significant amount.
B. total output decreased when the extra unit of the variable input was added.
C. the company has not yet reached the point of saturation.
D. total output increased, but the increase was very small.
Answer: B
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A reduction in production costs will result in a(n):
a. rightward shift of the supply curve. b. increase in supply. c. greater willingness and ability of producers to supply a larger quantity at any given price. d. greater willingness and ability of producers to supply the same quantity at a lower price. e. all of these.
Even-handed enforcement of contracts fuels economic prosperity because it
a. permits individuals to invade or infringe on the property rights of others. b. increases transaction costs. c. increases market uncertainty and the probability of contract violations. d. promotes gains from trade by keeping transaction costs low.
If the velocity of circulation is 10 and the money supply is $250, the value of transactions will be $25.
Answer the following statement true (T) or false (F)
When increases in the supply of an agricultural product are much greater than the increases in demand for it over time, then the price:
A. And quantity of agricultural products will increase B. And quantity of agricultural products will decrease C. Of agricultural products will increase, but the quantity will decrease D. Of agricultural products will decrease, but the quantity will increase