Diminishing marginal returns implies that:
A. marginal product is decreasing.
B. marginal product is increasing.
C. marginal product is constant.
D. marginal product may be increasing or decreasing.
Answer: A
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"The fewer the number of substitutes for a good, the more elastic the demand for that good." Is the previous statement true or false?
What will be an ideal response?
The widespread decline in the volatility of many macroeconomic variables after 1984 led economists to term this period the
A) Great Moderation. B) Low Volatility Era. C) Steady State. D) Long Boom.
Disclosing information in more usable ways to decision-makers:
A. can decrease the occurrence of rational ignorance in decision-making. B. can nudge people toward making better decisions. C. has been useful to organizations like the EPA in getting desired outcomes, like people deciding to buy more gas-efficient cars. D. All of these statements are true.
The federal government could stimulate investment spending by
A. phasing out the depreciation allowance on corporate income taxes. B. reducing subsidies to businesses. C. reinstating the windfall profits tax. D. reducing the tax rate on capital gains.