If a firm is experiencing diminishing marginal returns,
a. total output decreases as all resources are increased
b. total output decreases as all resources are decreased
c. total output decreases as one variable resource is increased, other things constant
d. additional increments of output diminish as one variable resource is increased, other things constant
e. additional increments of output diminish as all variable resources are increased
D
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Suppose that Argentina's dollar-denominated external assets and liabilities are $10 billion and $100 billion, respectively, and its Argentine peso-denominated external assets and liabilities are each 50 billion pesos (P). Suppose further that Argentina fixes its exchange rate at P1 = $US1. How was Argentina's net external wealth affected as a result of the devaluation of the peso (from P1 = $US1 to P3 = $US1)?
A) Net external wealth rose. B) Net external wealth fell. C) Net external wealth was not affected. D) One cannot determine how net external wealth was affected with the information provided
A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule:
Refer to the above table. In moving stepwise from possibility A to B to C … to F, the opportunity cost of a unit of steel in terms of wheat:
A. Increases
B. Decreases
C. Remains constant
D. Increases at first then decreases
If the Fed buys more bonds from the public, then the money supply will:
A. Decrease and the aggregate demand curve will shift to the right. B. Increase and the aggregate demand curve will shift to the right. C. Increase and the aggregate demand curve will shift to the left. D. Decrease and the aggregate demand curve will shift to the left.
One way people cope with uncertainty about the future is they:
A. avoid risks when it is reasonable to do so. B. only select risky alternatives if the expected value is twice as high as for a safe alternative. C. buy insurance. D. All of these are ways individuals cope with uncertainty.