"As I add more workers to the factory line, the additional output produced by each additional worker seems to decline. Eventually, the workers just get in each others' way.". This statement by a factory supervisor refers to the law of:
a. comparative advantage.
b. demand.
c. supply.
d. increasing returns to scale.
e. diminishing marginal returns.
e
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A fundamental axiom of rational choice theory is
A. consumers should be risk-neutral. B. consumers should disregard recent performance data. C. choices should be independent of irrelevant alternatives. D. choices should be independent of relevant alternatives.
Aggregate expenditure equals
a) C+I+G+X-M b) C+I+G+X+M c) C+I+G d) C+I+G+X
Suppose that financial market participants expect that the central bank will pursue a monetary expansion in the future. Also assume that the yield curve is initially upward sloping. Given this information, we would expect which of the following to occur?
A) The yield curve will become steeper. B) i2t will increase. C) i2t will decrease. D) The yield curve will become downward sloping.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30. B. exactly 60. C. fewer than 30. D. exactly 30.