A negative value for the marginal physical product would indicate that
A) the company has not yet reached the point of saturation.
B) total output increased by a significant amount.
C) total output decreased when the extra unit of the variable input was added.
D) total output increased, but the increase was very small.
Answer: C
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When a government fines and/or imprisons persons convicted of using illegal drugs, the government is attempting to decrease the illegal drug trade by shifting the ________ curve for illegal drugs ________
A) demand; rightward B) demand; leftward C) supply; rightward D) supply; leftward
Corporate profits are taxed twice because
A) taxes are collected on profits before profits are distributed to shareholders. B) the government wants to minimize the amount of tax paid on capital gains. C) it is economically efficient to reduce the amount of retained earnings. D) capital gains are not indexed to the rate of inflation.
If a price ceiling is a binding constraint on a market, then
a. the equilibrium price must be below the price ceiling. b. the quantity supplied must exceed the quantity demanded. c. sellers cannot sell all they want to sell at the price ceiling. d. buyers cannot buy all they want to buy at the price ceiling.
A financial asset is liquid:
A. only if it takes the form of cash. B. if it is held by the public and earning interest. C. if it can be carried easily from one place to another. D. if it can be readily exchanged for another asset or good.