A firm will begin to experience diminishing returns at the point where
A. marginal cost decreases.
B. marginal product increases.
C. marginal cost increases.
D. Both B and C are correct.
Answer: C
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A reduction in the required reserve ratio has the instant effect of:
a. Increasing bank shareholders' equity. b. Increasing total bank reserves c. Increasing excess reserves. d. None of the above is correct. e. Increasing the monetary base.
Government deficits mean that
a. national saving is negative so public saving is negative. b. national saving is negative so public saving is lower than otherwise. c. public saving is negative so national saving is negative. d. public saving is negative so national saving is lower than otherwise.
If China has domestic assets of $50 billion, domestic liabilities of $100 billion, and $50 billion in foreign assets, a 10% appreciation of the Chinese yuan will:
A) cause the Chinese domestic assets to increase in value. B) cause the Chinese domestic liabilities to decrease in value. C) cause the overall wealth to decrease by 5%. D) cause the overall wealth to increase by 5%.