The law of diminishing returns applies to which of the following segments of the marginal product of labor curve?
a. The point where labor input is zero.
b. The downward-sloping segment only.
c. The entire curve.
d. The upward sloping segment only.
b
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Which of the following is the correct name of the free-trade agreement between Mexico, the U.S., and Canada?
a. The American Free Trade Agreement (AFTA). b. The North American Free Trade Agreement (NAFTA). c. The Pacific Free Trade Agreement (PFTA). d. The Trans-American Free Trade Agreement (TAFA).
A proprietorship is
A. a business owned by one individual that employs 10 or fewer workers, and has been in business less than 15 years. B. a form of business in which the stock of the company is closely held by members of one family. C. a business owned by one individual who receives the profits and is legally responsible for the debts of the firm. D. a business with annual sales of less than $50,000 a year.
The above figure shows a labor market with minimum wage equal to $16. In this figure, what area equals the resources lost because of job search?
A) area A B) area B C) area C D) area D E) area E
Rather than prohibiting a good or service, the government might tax it. Imposing such a tax on a good or service ________ the equilibrium price and ________ the equilibrium quantity
A) raises; increases B) raises; decreases C) lowers; increases D) lowers; decreases