"Diminishing marginal returns" refer to a situation in which the
A) marginal cost of the next worker hired is less than the marginal cost of the previous worker hired.
B) average cost of the next worker hired is less than the average cost of the previous worker hired.
C) marginal product of the next worker hired is less than the marginal product of the previous worker hired.
D) average product of the next worker hired is less than the average product of the previous worker hired.
C
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a. True b. False Indicate whether the statement is true or false
The Fed is unlike other central banks in that it
a. has 12 branches. b. is completely centralized. c. has no real powers. d. also has control over fiscal policy.
Jacob buys less soda when the price of soda rises 10 percent, while the prices of all other goods also rise 10 percent. Jacob is
A. suffering from money illusion. B. worrying too much about a coming recession. C. paying too much attention to changes in relative prices. D. behaving in accordance with classical economic theory.