Comment on the following statement: "Diminishing returns occur when total output falls as additional units of labor are combined with fixed inputs in the production process."
What will be an ideal response?
The statement is false. Diminishing returns occurs when marginal product falls as additional units of labor are combined with fixed inputs in the production process.
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How does an import quota affect the domestic price of the import, the domestic consumption, the domestic production, and the quantity imported?
What will be an ideal response?
In the Gordon growth model, a decrease in the required rate of return on equity
A) increases the current stock price. B) increases the future stock price. C) reduces the future stock price. D) reduces the current stock price.
A firm’s price is
A. greater than average revenue. B. greater than marginal revenue. C. less than marginal cost. D. equal to average revenue.
If GDP is more than GNP, we know with certainty that
A) a budget deficit exists. B) a trade surplus exists. C) a trade deficit exists. D) none of the above