When you have diminishing marginal returns to labor
A) variable costs remain constant as more output is produced.
B) variable costs fall as more output is produced.
C) variable costs rise as more output is produced.
D) fixed costs rise as more output is produced because you have to buy more equipment to compensate.
C
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The average investor must weigh the benefits of liquidity against
A) the high taxes generally levied on liquid assets. B) the lower returns on liquid assets. C) the high transactions costs involved in disposing of liquid assets. D) the greater variability in the nominal returns on liquid assets.
Entrepreneurship
A. Can result in economic losses. B. Always involves greater rewards than risks. C. Occurs in small businesses, but not large corporations. D. Cannot earn an economic profit.
Refer to the above figure. Which of the graphs is consistent with the long-run aggregate supply curve?
A. Graph A B. Graph B C. Graph C D. Graph D
A nation's infrastructure refers to:
A. its ability to realize economies of scale. B. its stock of technological knowledge. C. public capital goods such as highways and sanitation systems. D. the productivity of its labor force.