The marginal productivity of labor will eventually decrease as more workers are employed because
A. the amount of capital will also be increasing.
B. on the average each worker will have fewer inputs to work with.
C. total product is decreasing.
D. average product is increasing.
Answer: B
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One of the principles behind the concept of the circular flow is that
A) in every economic exchange, the seller receives exactly the same amount that the buyer spends. B) in every economic exchange, the seller receives less than the amount that the buyer spends. C) in exchange involving products, the seller receives less than the amount the buyer spends, but in resource markets the seller receives more than the buyer spends. D) the seller of goods receives exactly the same amount that the buyer spends, but the seller of resources receives less than the buyer spends.
The concept of economic efficiency refers to the size of the "economic pie" whereas the concept of equality refers to how the "pie" is distributed
a. True b. False Indicate whether the statement is true or false
Based on the graph showing the effects of a government budget deficit, a budget deficit would lead to ______.
a. a shift in the demand curve for loanable funds to the left
b. a shift in the supply curve for loanable funds to the right
c. a decrease in loanable funds from Q1 to Q2
d. an increase in loanable funds from Q1 to Q2
Of the countries in the European Union, ______ have adopted the euro as its currency.
Fill in the blank(s) with the appropriate word(s).