If marginal product is greater than average product, then
A) average product must be decreasing.
B) marginal product must be decreasing.
C) marginal product must be increasing.
D) marginal product could either be increasing or decreasing.
Answer: D
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In endogenous growth models, it is assumed that
a. there are external economies from public or private investments. b. there are diminishing marginal returns to capital. c. growth is explained by forces outside the model. d. the capital-labor ratio is constant.
Which of the following statements is (are) correct? Keynesian economists
a. favor neither active monetary policies nor active fiscal policies to stabilize the economy. b. favor both active monetary and fiscal policies to manage aggregate demand. c. are known as noninterventionists. d. are perceived as favoring smaller, less active government policy. e. Either b or d
Refer to Figure 9.4. In the short run, how much should the firm produce at the price P3?
A. 0
B. Q1
C. Q2
D. Q3
If there are no reserves, domestic adjustments to payment imbalances under fixed exchange rates require surplus countries to forsake full employment and deficit countries to forsake price stability.
Answer the following statement true (T) or false (F)