Diminishing returns begin to occur when the
A. marginal product curve intersects the average product curve.
B. slope of the ray from the origin reaches a maximum.
C. slope of the total product curve reaches a maximum.
D. total product curve reaches a maximum.
Answer: C
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Figure 14-6
In the situation shown in , how could the Fed return the economy to potential output?
a.
decrease government spending
b.
decrease taxes
c.
sell U.S. government bonds to banks
d.
lower the discount rate
e.
lower the required reserve ratio
An upward shift of the consumption function might be caused by _____
Fill in the blank(s) with the appropriate word(s).
If a perfectly competitive firm maximizes short-run profits, its marginal revenue will be positive and less than its price
Indicate whether the statement is true or false
The demand curve that a monopolist faces
a. is steeper than the market demand curve b. is the same as its marginal revenue curve c. is controlled by the government d. does not exist e. is the same as the market demand curve