To produce 150 units of output, a firm must use 3 employee-hours. To produce 300 units of output, the firm must use 8 employee-hours. Apparently, the firm is:
A. not using any fixed factors of production.
B. producing in the long run.
C. experiencing negative returns.
D. experiencing diminishing returns.
Answer: D
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Marginal utility is
A. the difference in price between one store and another. B. the difference in value between “some” of a thing and “none” of a thing. C. the difference between any two successive total utility figures. D. acquired only with the first few units of a good or service. E. utility that is barely satisfactory.
The investment demand curve as a function of various possible interest rates for the entire economy is assumed to be:
a. positively sloped. b. negatively sloped. c. rising, then falling. d. falling, then rising.
The text takes the perspective that international politics today is defined by both
a. globalization and antiglobalization. b. continuity and change. c. poverty and prosperity. d. power and peace.
Prices and wages tend to be:
A. flexible both upward and downward. B. inflexible both upward and downward. C. flexible downward, but inflexible upward. D. flexible upward, but inflexible downward.