Increased government spending for investments such as highways or harbors financed by increasing the public debt would most likely:
A. increase the amount of private capital stock in the future.
B. increase the amount of public capital stock in the future.
C. crowd out future public investment.
D. reduce the economy's future productive capacity.
Answer: B
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The law of diminishing returns means that
a. total output will increase, but at a diminishing rate b. marginal product will increase, but at a diminishing rate c. total cost will increase, but at a diminishing rate d. total revenue will increase, but at an increasing rate e. total output will decrease
A risk-seeker is likely to:
A. put his money under his mattress instead of buying company stock. B. buy a government bond instead of a stock. C. put money in a savings account instead of investing in a start-up company. D. invest in a start-up company instead of putting his money under his mattress.
Imagine you own a perfectly competitive firm. Calculate your company’s total revenue, average revenue, and marginal revenue for a year, using hypothetical numbers. Do not use examples or numbers from the text.
What will be an ideal response?
Refer to the graph shown, which depicts a perfectly competitive firm. To maximize profit, the firm represented will produce:
A. 40 units of output. B. 90 units of output. C. 130 units of output. D. 110 units of output.