As more labor is hired in the short run, diminishing returns are observed because:
A. The new workers are lazy.
B. The new workers have less capital and land to work with.
C. All the workers begin to socialize more and work less.
D. The new workers are less skilled.
Answer: B. The new workers have less capital and land to work with.
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In the mid-1970s, changes in oil prices greatly affected U.S. inflation. When oil prices rose, the U.S. would experience ________.
A. cost-push inflation and falling output B. demand-pull inflation and falling output C. cost-push inflation and rising output D. demand-pull inflation and rising output
What is the effect of an increase in unemployment benefits on the unemployment rate?
What will be an ideal response?
Refer to Figure 3.1. If Marge and Homer both confess to the crime, what is Marge's payout?
A) 1 year B) 2 years C) 7 years D) 15 years
Developing countries have not benefited as much as expected from their higher education programs because of
(a) lack of program focus on the needs of the country. (b) increasing returns to scale in each individual's education. (c) graduates get jobs in the private sector. (d) all of the above.