Which of the following is consistent with diminishing marginal returns?
a. increasing labor by 10% and output increasing 10%.
b. increasing labor by 10% and output prices increase by less than 10%.
c. increasing labor by 10% and the marginal product of labor increasing 10%.
d. increasing labor by 10% and output increasing by less than 10%.
D
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The Consumer Price Index (CPI) measures inflation for every individual
A) True, the weights used in calculating the CPI are adjusted for every individual in the country. B) True, people all face the same prices and therefore face the same inflation. C) False, the CPI uses weights based on how much each product represents in the typical household budget. D) False, the CPI doesn't measure inflation.
All points on the production possibilities curve are:
a. unattainable. b. fair. c. efficient. d. optimal.
There was an extensive black market (illegal market) for many consumer products in the United States during World War II. A likely explanation of the black market is that:
a. the prices of goods were artificially held down by price controls. b. black markets were legal during the war. c. goods were not subject to price controls. d. gasoline rationing greatly restricted civilians from driving to stores.
Which of the following statements is correct?
A. Marginal social cost is the share of marginal cost caused by an activity that is paid for by the persons who carry out the activity. B. Marginal private cost is the share of marginal cost caused by an activity that is borne by persons other than those who carry out the activity. C. Marginal social cost is the sum of marginal private cost and incidental cost. D. Marginal private cost and incidental cost are one and the same.