Which of the following is false?
a. The total product schedule shows the total amount of output generated as the level of the fixed input increases.
b. The marginal product of any single input is the change in total product resulting from a small change in the amount of that input used.
c. As the amount of a variable input is increased, the amount of other fixed inputs being held constant, a point ultimately will be reached beyond which marginal product will decline. This is called diminishing marginal product.
d. A firm never knowingly allows itself to reach the point where the marginal product becomes negative.
a
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The above figure shows the production possibility frontier for a country. Suppose the country is producing at point D. What is the opportunity cost of increasing the production of rice to 15 tons?
A) 9 thousand bottles of wine B) 12 tons of rice C) 6 thousand bottles of wine D) 15 thousand bottles of wine E) Nothing, it is a free lunch.
The following data describe France's economy in 2008
Consumption 234 billion euros Government expenditure 93 billion euros Investment 88 billion euros Exports 128 billion euros Imports 137 billion euros From the data, we can conclude that in France A) net exports totaled -11 billion euros. B) GDP equaled 424 billion euros. C) GDP equaled 680 billion euros. D) Net exports totaled 265 billion euros.
A firm using a two-part tariff can produce the economically efficient outcome by
A) making the fixed-fee portion of the price as low as possible. B) setting the fixed-fee portion of the price at some proportion to the fixed cost of production. C) setting the per-unit portion of the price equal to the average cost of production. D) setting the per-unit portion of the price equal to the marginal cost of production.
The ________ is an international organization that sets rules of conduct for international commerce
A) International Trade Commission (ITC) B) World Trade Organization (WTO) C) International Trade Agreement (ITA) D) World Bank