Diminishing marginal product is closely related to
a. diminishing total cost.
b. diminishing marginal cost.
c. increasing price.
d. increasing marginal cost.
d
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Which of the following is true of seasonal unemployment?
a. It is not included in calculating the natural rate of unemployment. b. It is reflected in the GDP gap. c. It is always present, even in a healthy economy. d. It causes the natural rate of unemployment to rise. e. It inflates potential GDP.
A unit tax is
a. a tax in the form of a percentage of the value of the good taxed b. a fixed tax in the form of cents or dollars per unit of the good c. a sales tax applied to a foreign good d. any tax levied on a good e. the same as a poll tax
Suppose there is an economy that has 100 people each of whom makes a different good, and that they use a barter system for exchange. How many relative prices will there be?
What will be an ideal response?
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. After comparing each country's production possibilities curve, it is clear that:
A. Country B will lose by trading with Country A. B. Country A should specialize in trucks and Country B should specialize in cars, and both will benefit from trade. C. Country A should specialize in cars and Country B should specialize in trucks, and both could benefit from trade. D. Country A will not benefit from trade.