A horizontal long-run average cost curve indicates
A) constant returns to scale.
B) diseconomies of scale.
C) constant marginal physical product.
D) economies of scale.
Answer: A
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Which of the following is likely to happen if consumption in an economy falls?
A) Asset prices rise. B) Mortgage defaults fall. C) Labor supply falls. D) Layoffs rise.
Which of the following statements describes the presence of diminishing returns? All else equal,
a. Marginal product is constant as output increases b. Marginal product is falling as output increases c. Marginal product is rising as output increases d. Marginal product is zero
After taking out a one year loan with an annual interest rate of 10 percent, Tommy pays $3,300 back to the bank. The principal of the loan must be ___________ and the interest payment must be ___________.
A. $3,000; $300 B. $3,300; $300 C. $300; $3,300 D. $300; $3,000
Which statement is most accurate with respect to the federal government's land policies in the 19th century?
A. It gave away land, and rarely if ever charged even a token amount per acre. B. It gave away a lot of land and charged a token amount for the rest. C. It gave away no land, but charged only a token amount. D. It charged a fairly substantial amount for the land it sold.