Refer to the diagram. At output level Q, Multiple Choice
A. one cannot determine whether marginal product is falling or rising.
B. marginal product is falling.
C. marginal product is rising.
D. marginal product is negative.
Answer: B. marginal product is falling.
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Which of the following events in U.S. history did not create economic growth (shift the production possibilities curve outward)?
A. The Louisiana Purchase in 1803 that nearly doubled the land mass of the United States. B. Inventions of machines such as Cyrus McCormick's mechanical reaper. C. The introduction of the moving assembly line in automobile production by Henry Olds. D. The dramatic reduction in the U.S. unemployment rate from 1939 to 1941 as we prepared to enter World War II.
If the costs of producing pizza increase, which will occur?
A) The supply of pizza will decrease. B) The demand curve for pizza will shift leftward when the price of a pizza increases. C) Pizza will cease to be produced and sold. D) The quantity of pizzas supplied will increase as sellers try to cover their costs. E) The demand curve for pizza will shift rightward when the price of a pizza increases.
Business finance companies
A) purchase accounts receivable of small firms at a discount. B) sell commercial paper and buy long-term corporate bonds. C) take in deposits from savers and buy corporate commercial paper. D) are strictly regulated by state governments.
An implication of the median voter theorem is that, in a race between Republicans and Democrats,
a. if Republicans want to win, they will take a "middle-of-the-road" stance on many issues. b. if Democrats want to win, they will take an extreme stance on many issues. c. Republicans and Democrats go to extremes to differentiate themselves from one another. d. Republicans and Democrats work hard to identify the fringe voters.