What is the difference between diminishing marginal returns and diseconomies of scale?
What will be an ideal response?
Diminishing marginal returns is a short run concept. It occurs when increases in output become smaller and smaller as more units of a variable factor are combined with some fixed factor. Diseconomies of scale is a long run concept. It occurs when, as output increases, long-run average cost increases.
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The velocity of circulation is defined as the
A) average number of times in a year that each dollar is used to buy goods and services. B) price level obtained when the money market is at its equilibrium. C) quantity of money demanded at equilibrium. D) speed with which changes in the interest rate spread throughout the economy. E) quantity of money supplied by the Fed.
An increase in tuition rates for astronomy students would
a. decrease the wage rate for astronomers b. cause the demand curve for astronomers to shift to the right c. cause the demand curve for astronomers to shift to the left d. lead to future reductions in the labor supply of astronomers e. lead to a rise in the marginal revenue product of astronomers
The time spent by students in college
a. leads to lower future wages b. is an investment in human capital c. decreases human capital by lowering work experience d. would be a positive compensating wage differential in markets for student labor e. increases as the wage rate rises
Melinda buys new equipment for her dental office with funds she borrowed from a bank that raised funds from depositors. Which of the following is correct?
a. Melinda is an investor. b. The depositors are investors. c. Both Melinda and the depositors are investors. d. Neither Melinda nor the depositors are investors.