As more workers are hired, the marginal physical product of labor eventually declines because
A) less efficient workers are hired as the number of workers increases.
B) workers do not work well together when the number of workers increases.
C) the amount of capital each worker has to work with declines as the number of workers increases.
D) of diseconomies of scale.
C
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In one year, a firm increases its production by $9 million and increases sales by $8 million. All other things in the economy remaining the same, which of the following is true?
A) GDP increases by $8 million and inventory investment decreases by $1 million. B) GDP increases by $9 million and inventory investment increases by $1 million. C) Inventory investment decreases by $1 million. D) GDP increases by $8 million and investment increases by $1 million. E) GDP increases by $17 million.
In the early 1960s and early 1970s, the United States has run
a. small trade deficits. b. large trade surpluses. c. small trade surpluses. d. large trade deficits.
If consumption has fallen, which of the following could be TRUE?
a. Taxes have fallen. b. Income has fallen. c. Taxes and income have fallen. d. Disposable income has risen.
Economic historians identify which invention as a major factor that started the Industrial Revolution in Britain?
A. Steam engine B. Automobile C. Telephone D. Electric motor