When an economy faces diminishing returns,
A) the slope of the per-worker production function becomes flatter as capital per hour worked increases.
B) the per-worker production function shifts to the left.
C) the per-worker production function shifts to the right.
D) the slope of the per-worker production function becomes steeper as capital per hour worked increases.
A
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The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours. If Scott offers two swim tours per week, he incurs a marginal cost of
A) more than $30. B) $30. C) $20. D) $10. E) $2.
When the price of a sweet roll is $2, the bakery sells 300 rolls per week. If it raises the price to $3, then it sells 150 rolls per week. Based on this, the price elasticity of a sweet roll between these prices is
A. 0.40. B. 1 C. 1.67. D. 0.67.
Refer to above figure. With free trade and no tariffs, what is the quantity of Widgets imported?
What will be an ideal response?
Welfare economics is the study of
a. taxes and subsidies. b. how technology is best put to use in the production of goods and services. c. government welfare programs for needy people. d. how the allocation of resources affects economic well-being.