Which of the following refers to diminishing marginal returns?
A) The revenue of a cell phone manufacturer decreased when it increased its product price.
B) The additional output produced in a firm decreased as more workers were hired.
C) The profits of an entrepreneur increased substantially after he fired a few of his employees.
D) The total output of a firm decreased as more workers were hired.
B
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A perfectly elastic demand curve has a slope of ________ while a perfectly inelastic demand curve has a slope of ________.
A. 0; infinity B. 1; 0 C. 0; 1 D. infinity; 0
Of the following, the largest source of revenue for the federal government is the
A) personal income tax. B) transfers from state and local governments. C) corporation income tax. D) lottery. E) revenue from the sale of public lands.
In the specific factors model, which of the following is treated as a specific factor?
A) land B) labor C) cloth D) food E) technology
Tariffs and other trade restrictions increase the domestic scarcity of products from abroad. Such policies benefit domestic producers of the restricted products at the expense of domestic consumers. This statement: a. is essentially correct
b. contains two errors; trade restraints do not increase the domestic scarcity of product and neither do they harm domestic consumers. c. contains one error; domestic producers gain at the expense of foreign producers rather than domestic consumers. d. contains one error; the trade restraints do not increase the scarcity of foreign produced goods.