The marginal revenue product of capital curve is downward sloping due to the law of diminishing returns
Indicate whether the statement is true or false
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Refer to the above figure. A price ceiling of $20 results in
A) a shortage of 100 units. B) a shortage of 200 units. C) a surplus of 100 units. D) a surplus of 200 units.
State one implication of the principle of division of labor
Suppose that, at a given level of disposable income, consumers decide to save more. Explain what effect this decision will have on equilibrium income. Also, explain what effect this decision will have on the level of saving once the economy has reached the new equilibrium
What will be an ideal response?
According to classical theory, a shift in aggregate demand will affect
A. the price level only. B. both real Gross Domestic Product (GDP) and the level of employment. C. real Gross Domestic Product (GDP) only. D. the level of employment only.