Diminishing marginal returns implies that:
A. marginal costs are decreasing.
B. marginal costs are increasing.
C. marginal costs are constant.
D. marginal costs may be increasing or decreasing.
Answer: B
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When does a price searcher's marginal revenue curve lie below its demand curve?
A) At all times, since this is the definition of a price searcher B) When it cannot confine price reductions to the new sales it's trying to attract by lowering its price C) When it is producing more than the net revenue maximizing quantity D) When its marginal cost curve is rising E) When the demand curve slopes downward to the right
Alt-A borrowers were those who
A) used mortgages to purchase apartments. B) chose adjustable-rate mortgages instead of fixed-rate mortgages. C) borrowed using "interest-only" mortgages. D) did not provide documentation of their income when applying for a mortgage.
The type of security that is protected against inflation are:
A. Treasury bonds. B. Treasury notes. C. TIPS. D. Treasury bills.
During a period of contractionary monetary policy
A. the price level is decreased, which leads to a decrease in the money supply. B. the price level is increased, which leads to an increase in the money supply. C. the rate of growth of the money supply is increased, leading to an increase in the price level. D. the rate of growth of the money supply is reduced, leading to a decrease in the price level.