The principle of diminishing marginal product states:
A. the total output produced increases as the quantity of the input increases.
B. the marginal product of an input decreases as the quantity of the input increases.
C. the marginal product of an input eventually will be negative.
D. the total output produced decreases as the quantity of the input increases.
B. the marginal product of an input decreases as the quantity of the input increases.
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Suppose that the interest rate is greater than the equilibrium interest rate. Which of the following occurs?
I. There is an excess quantity of money. II. The quantity of money automatically increases. III. The interest rate falls. A) I B) I and II C) I and III D) I, II and III
One consequence of a negative externality is that
A. social costs are greater than private costs. B. private costs are greater than social costs. C. the marginal private cost curve slopes upward. D. the market output is less than the socially optimal output. E. a and c
A leading indicator:
a. changes in either direction before a recession starts. b. usually declines before a recession starts. c. generally changes after real GDP changes. d. remains unaffected by changes in real GDP. e. does not change with business cycles.
Currency includes
a. paper bills and coins. b. demand deposits. c. credit cards. d. Both (a) and (b) are correct.