If the marginal product of capital doesn't change as the amount of capital increases, a figure showing the relationship between output and capital
A. slopes upward with a slope that declines as the amount of capital increases.
B. is a vertical line.
C. is a straight line with a slope of zero.
D. is a straight line with constant upward slope.
Answer: D
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Refer to Figure 18-5. The middle 20 percent of households
A) earn 20 percent of the society's total income. B) earn 36 percent of the society's total income. C) earn 48 percent of the society's total income. D) earn 50 percent of the society's total income.
Which of the following statements is TRUE?
A) At the monopolist's equilibrium, resources are being efficiently allocated. B) With a monopoly, the value to society of the last unit produced is less than it's production cost. C) Monopolists raise the price and restrict production, compared to a competitive situation. D) A monopolist always produces a higher level of output than would be produced if the market were competitive.
One argument for having the government regulate natural monopolies is that without regulation:
A. These monopolies usually produce things that are potentially harmful to our health B. These monopolies produce at a level where marginal benefit is greater than marginal cost C. These monopolies produce at a level where marginal benefit is less than marginal cost D. The industry would become competitive and there would be too many firms in the market to achieve efficiency
The price of one currency in terms of another is called an exchange rate
Indicate whether the statement is true or false