The law of diminishing returns states that:
a. as additional increments of resources are added to producing a good or service, the marginal benefit from those additional increments will increase.
b. as society moves from one choice to another, the production of physical capital declines.
c. it is impossible to get more of one good without giving up some amount of the other good
d. as additional increments of resources are added to producing a good or service, the marginal benefit from those additional increments will decline.
d
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The production possibilities curve for the nation of Economagic shifts to the left. This could have been caused by:
a. an increase in Economagic's labor supply. b. innovation in the production of goods in Economagic. c. a war that destroyed some of Economagic's resource base. d. unemployment among Economagic's workers. e. Economagic's choice of more consumption and less capital last period.
Faster economic growth in the United States may lead to the serious macroeconomic problem of higher
A. levels of unemployment. B. federal budget deficits. C. levels of inflation. D. levels of poverty.
If the Consumer Price Index was 165 in one year and 175 in the next year, then the rate of inflation from one year to the next was approximately:
A. 6.1 percent. B. 5.7 percent. C. 7.5 percent. D. 4.3 percent.
One way that perfect competition and monopoly differ is that in
A. perfect competition, there is only one firm in the industry. B. perfect competition, there is a difference between firm and industry demand. C. monopoly, the firm produces less than the total market quantity supplied. D. monopoly, there is a difference between firm and industry demand.