The law of diminishing return does not apply to a firm in the long run because in this phase:
a. all the factors of production are fixed.
b. there are no fixed factors of production.
c. there are some fixed and some variable factors of production.
d. the producer is required to produce a fixed level of output.
e. the producer can change the level of output only by changing the variable factors, fixed factors remaining unchanged.
b
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Items that are purchased by individuals for their own enjoyment are called
A) consumption goods and services. B) capital goods. C) government goods and services. D) exports of goods and services. E) private goods.
The firm illustrated above is
A) earning an economic profit of $400,000 per month. B) earning an economic profit of $2,000,000 per month. C) earning an economic profit of $1,600,000 per month. D) incurring an economic loss of $400,000 per month. E) incurring an economic loss of $1,600,000 per month.
A devaluation of the home currency
A) makes foreign goods and services cheaper relative to those sold at home. B) makes domestic goods and services more expensive relative to those sold abroad. C) decreases demand and output. D) increases demand for domestic goods and services. E) increases output and makes domestic goods and services cheaper relative to those sold abroad.
Adam Smith's book, one of the first systematic treatments of economics, was entitled
a. The Plan of the Ages. b. The General Theory of Money, Taxes, and Income. c. The Wealth of Nations. d. Principles of Economics. e. Concepts in Moral Philosophy.