The law of diminishing marginal returns implies that, in the short run the
a. output must fall beyond a certain point
b. price must fall beyond a certain point
c. marginal product of the variable input must eventually decrease
d. wages of workers must eventually increase
e. total cost must fall beyond a certain point
C
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The classical growth theory asserts that
A) population growth leads to more growth in technology. B) population growth will lead to people earning only a subsistence level of income. C) economic growth will continue indefinitely. D) economic growth and population growth complement each other. E) population growth increases a nation's economic growth.
The federal budget is decided upon by the
A) President of the United States and the United States Treasury. B) the United States Treasury alone. C) President of the United States and the United States Congress. D) President of the United States and the Federal Reserve system. E) United States Congress and the Federal Reserve System.
Tariffs tend to reduce the volume of imports by
A. Setting maximum allowable import limits. B. Making them more expensive to domestic consumers. C. Placing severe quality restrictions on imported goods. D. Reducing prices of domestically produced goods.
The short-run supply curve for a perfectly competitive firm is the portion of its
A. MC curve above the ATC curve. B. ATC curve below the MC curve. C. MC curve above its AVC curve. D. ATC curve above the MC curve.