In general, the marginal benefit of advertising ________ as more advertising is purchased because the gross profits from advertising ________ at a(n) ________ rate.
A) increases; decrease; decreasing
B) decreases; decrease; decreasing
C) decreases; increase; decreasing
D) decreases; decrease; increasing
C) decreases; increase; decreasing
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Investment in capital accumulation, as well as investment in education and other labor productivity enhancing programs, is necessary for economic growth
a. True b. False Indicate whether the statement is true or false
Why do economists use the concept of elasticity in addition to measurement of the slope of the demand curve?
a. Mathematical equations are favored over graphical analysis. b. Elasticities are independent of the units of measure. c. The concept of elasticity can be used in other areas of economics, whereas the slope of the demand curve is only useful in demand analysis. d. These terms are interchangeable, but elasticity has the more professional sound.
Economic growth can be portrayed as a(n):
What will be an ideal response?
Refer to Scenario 5.5. Jalopy Automotive's executives,
A) if risk-neutral, would fix the flaw because it enables them to have a sure outcome. B) if risk-neutral, would fix the flaw because the cost of fixing the flaw is less than the expected cost of not fixing it. C) if risk-loving, would fix the flaw because it enables them to have a sure outcome. D) if risk-averse, would not fix the flaw because the cost of fixing the flaw is more than the expected cost of not fixing it. E) would fix the flaw regardless of their risk preference, because of the large probability of high-cost outcomes.