The Law of Increasing Cost is based upon which of the following?
A. If units of a resource are added to a fixed proportion of other resources, eventually marginal output will decline.
B. Economies of scale eventually outweigh diseconomies of scale.
C. Resources become more suitable for use in the production process as the output of one good expands.
D. All of the choices are true.
A. If units of a resource are added to a fixed proportion of other resources, eventually marginal output will decline.
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The figure above shows the demand for fruit snacks. Which movement reflects a decrease in population?
A) from point a to point e B) from point a to point b C) from point a to point c D) from point a to point d
Which of the following will lead to an increase in the quantity of money demanded?
a. A decrease in the overall level of wealth in the economy b. A decrease in the price level c. A decrease in nominal income d. An increase in real income e. A decrease in real income
The main function of the Federal Reserve System is to:
A. supervise the operation of member banks. B. control the money supply. C. serve as the fiscal agent for the federal government. D. clear checks from member banks.
What effect does new technology usually have on an economy?
What will be an ideal response?