When the average product is decreasing, marginal product
A) equals average product.
B) is increasing.
C) exceeds average product.
D) is decreasing.
E) is less than average product.
E
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If the absolute price elasticity of demand is 2.0, a 5 percent decrease in price will increase quantity demanded by
A) 10 percent. B) 20 percent. C) 25 percent. D) 5 percent.
Which of the following statements regarding poverty in the United States is correct?
a. There are as many poor African Americans as there are poor whites. b. The incidence of poverty is lower among females than among males. c. The incidence of poverty is higher among African Americans than among whites. d. Most of the poor people in the United States are elderly (over age 65).
According to the Keynesian view, if policy makers thought the economy was about to fall into a recession, which of the following would be most appropriate?
a. a change in government spending and taxation that will lead to a budget surplus b. a planned increase in the budget deficit c. reducing government expenditures d. balancing the budget
The crowding-out effect stresses that increased government borrowing to cover a budget deficit will cause
a. a higher interest rate and depreciation of the U.S. dollar. b. a higher interest rate and appreciation of the U.S. dollar. c. a lower interest rate and depreciation of the U.S. dollar. d. a lower interest rate and appreciation of the U.S. dollar. e. no change in the interest rate and depreciation of the U.S. dollar.