According to the law of diminishing returns, what will happen if a population increases with no corresponding increase in other resource inputs?
a. Output per capita will eventually rise sharply
b. Output will rise, but by ever smaller amounts.
c. Output will eventually cease altogether.
d. Workers will become increasingly efficient.
b. Output will rise, but by ever smaller amounts.
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If the absolute value of the price elasticity of demand for cell phone service is 3, then if the price of cell phone service increases by 1%, quantity demanded would:
A. decrease by 3%. B. increase by 3%. C. increase by 0.33%. D. decrease by 0.33%.
The money demand curve, against possible levels of interest rates, has a
A) negative slope. B) zero slope. C) positive slope. D) positive slope for low levels of money demand, and a negative slope for high levels of money demand.
The supply of labor to a particular job will be greater the
a. less the social status that is attached to the job b. less training is required to perform that job c. lower the fringe benefits are of the job d. less flexible the work schedules are in the job e. higher degree of personal risk involved in the job
Explain why economic profits in all perfectly competitive markets will tend toward zero in the long run.
What will be an ideal response?