Explain the law of diminishing returns
What will be an ideal response?
The law of diminishing returns says that when additional units of a variable input are added to fixed inputs after a certain point, the marginal product of the variable input declines.
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The federal budget surplus recorded in 1998, resulted from a decrease in taxes and rapid growth in federal outlays
Indicate whether the statement is true or false
Stock market bubbles impact consumers by:
A. encouraging more work and delaying retirement. B. encouraging greater consumption and less saving. C. encouraging greater consumption and greater saving. D. resulting in less investment in home ownership and more into stocks.
When the value of exports exceeds the value of imports then
A. the country is running a trade deficit. B. changes in productivity will occur. C. the country is running a trade surplus. D. international trade is in balance.
The international agency that lends money to DVCs for economic development projects is the:
A. World Bank. B. International Monetary Fund (IMF). C. World Trade Organization (WTO). D. World Credit Union.