When total product is decreasing, marginal product is
A. constant.
B. positive and increasing.
C. negative.
D. positive and decreasing.
Answer: C
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The primary assets of a pension fund are
A) money market instruments. B) corporate bonds and stock. C) consumer and business loans. D) mortgages.
If an economy keeps increasing its capital stock, then over time its production possibilities curve will:
a. not move. b. shift to the left. c. shift to the right. d. disappear because scarcity ceases to exist. e. demonstrate massive job loss for workers.
The Fed's control of the money supply is not precise because
a. Congress can also make changes to the money supply. b. there are not always government bonds available for purchase when the Fed wants to perform open-market operations. c. the Fed does not know where all U.S. currency is located. d. the amount of money in the economy depends in part on the behavior of depositors and bankers.
Using Figure 4.1, suppose that point B represents the optimal mix of output for a society. If market forces cause society to produce and consume at point C, then
A. There is market failure. B. Points A and D are unattainable with the given resources and technology. C. The forces of supply and demand will return society to point B. D. There is government failure.