If more of an input factor is used, while holding other inputs constant, a firm will eventually experience:
A. Diminishing returns.
B. Falling marginal cost.
C. Rising marginal physical product.
D. Rising consumer demand.
Answer: A. Diminishing returns.
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Which of the following conditions is TRUE for a profit-maximizing firm in a perfectly competitive industry?
A) MR = TC B) ATC = AFC C) MR = MC D) MC = AVC
The foreign exchange rate describes the
A) balance of trade. B) balance of payments. C) law of comparative advantage. D) price of foreign currency in terms of domestic currency.
All of the following are objectives of the Federal Reserve system, except
A. to provide a constant level of currency, resisting pressure for currency growth. B. to supervise and regulate our financial institutions. C. to provide banking services for the U.S. government. D. to serve as a lender of last resort to commercial banks and thrift institutions.
Suppose that a labor market is initially in equilibrium. If the minimum wage is set above the initial equilibrium wage rate:
A. all workers in the labor market will be better off, receiving a higher wage per hour. B. the labor supply curve will shift to the right. C. the quantity demanded of labor will decrease along the given labor demand curve. D. All of these