When a firm hired its tenth worker, its factory output increased by four units per month. Would you expect the firm's output to increase by eight more units per month if the firm hired two more workers?
What will be an ideal response?
No. The principle of diminishing marginal returns suggests that after some point of increasing returns, each incremental worker should have a progressively lower level of marginal productivity.
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Why might IS policies make a country likely to incur a large foreign debt?
What will be an ideal response?
When business is profitable, corporate managers will prefer plowback to other sources of funding
a. True b. False Indicate whether the statement is true or false
Which of the following countries has the highest degree of income inequality?
a. U.S. b. India c. Japan d. Brazil
If aggregate demand shifts right then in the short run
a. firms will increase production. In the long run increased price expectations shift the short-run aggregate supply curve to the right. b. firms will increase production. In the long run increased price expectations shift the short-run aggregate supply curve to the left. c. firms will decrease production. In the long run increased price expectations shift the short-run aggregate supply curve to the right. d. firms will decrease production. In the long run increased price expectations shift the short-run aggregate supply curve to the left.