Diminishing returns to physical capital suggests that
What will be an ideal response?
when the amount of human capital per worker and the state of technology are fixed, successive increases in the amount of physical capital per worker lead to smaller increases in productivity
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The above figure gives your budget line between CDs and magazines. What would allow you to buy more CDs?
A) a decrease in the relative price of CDs B) an increase in income C) a decrease in the price of magazines with no change in the price of CDs D) All of the above changes would allow you to buy more CDs.
Based on the theory of comparative advantage, nations maximize their well being when they
A) create more jobs. B) allocate resources more efficiently. C) increase trade surpluses. D) increase exports.
Both inflation and deflation refer to a change in ______.
a. the price level b. the minimum wage c. the efficiency wage d. the equilibrium wage
At expiration, the value of an option:
A. is equal to the intrinsic value. B. is less than the intrinsic value. C. is equal to the time value of the option. D. is greater than the intrinsic value.