When firms add workers and find that the additional workers add less to output than their predecessors did, they are experiencing
A. diminishing returns.
B. the division of labor.
C. diminishing marginal utility.
D. the law of large numbers.
Answer: A
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An increase in consumption, investment, or net exports caused by a decrease in government purchases is known as
A) crowding in. B) a closed economy. C) crowding out. D) demand-side effects.
John has to choose between two jobs: one that offers him $50 per hour and one that offers him $35 per hour. The opportunity cost of choosing the job that offers him $50 per hour is:
A) $1.5 per hour. B) $15 per hour. C) $35 per hour. D) $85 per hour.
In the above figure, Brendan originally consumes at point A. If his income rises and compact discs are a normal good but haircuts are an inferior good then he will begin consuming at a point such as
A) E. B) B. C) C. D) D.
The principle of diminishing marginal utility can potentially be used to support policies that redistribute income. This principle suggests that increases in income for an individual will generate less additional happiness the higher the level of income
a. True b. False Indicate whether the statement is true or false