Refer to the above table. Which of the following statements is correct?
A) The table follows economic principles because in an increasing cost industry, increases in a variable input will lead to increase in output.
B) The table does not follow economic principles because in an increasing cost industry, increases in a variable input will lead to decrease in output.
C) The table follows economic principles because the law of diminishing marginal product predicts that increase in a variable input will eventually lead to a decrease in the marginal physical product.
D) The table does not follow economic principles because the law of diminishing marginal product predicts that increase in a variable input will eventually lead to an increase in the marginal physical product.
C
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Giffen goods
A) have not existed since prior to the Industrial Revolution. B) were proven to exist in the 1890s by Sir Robert Giffen. C) were not shown to actually exist until 2006. D) are theoretical and have never been discovered in the real world.
Assume that business investment spending rises, and the increase is funded by greater borrowing in the capital markets. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and current international transactions balance in the context of the Three-Sector-Model? a. The GDP Price Index falls and current international
transactions balance becomes more negative (or less positive). b. The GDP Price Index rises and current international transactions balance becomes more negative (or less positive). c. The GDP Price Index and current international transactions balance remain the same. d. The GDP Price Index rises and current international transactions balance remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
What was the most important consequence of suburbanization?
A. It made people less dependent on their cars. B. It was very bad for the construction industry. C. It left the cities with large concentrations of poor people. D. It raised the tax bases of most cities.
As of 2010, to be in the bottom quintile for income distribution in the United States, a family needed in income no more than
A. $35,000. B. $27,000. C. $23,000. D. $15,000.