Exhibit 7-4 A marginal product curve
As shown in Exhibit 7-4, the law of diminishing returns applies in the range of:
A. over 1 workers per day.
B. over 3 workers per day.
C. between 0 and 3 workers per day.
D. between 0 and 5 workers per day.
Answer: B
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It is possible for a nation to have an absolute advantage in the production of a product, but not a comparative advantage in the production of the same product
a. True b. False Indicate whether the statement is true or false
A continuing resolution allows
A. Congress to spend money directly without Presidential signature. B. spending to continue as it has been for a specified period of time. C. spending to continue a program forever. D. spending on Presidential priorities without Congressional approval.
Answer the following statement(s) true (T) or false (F)
1. Trading is beneficial whenever people differ in their abilities or differ in their tastes. 2. In order for there to be a gain from trade, there has to be a difference in either tastes or abilities.
Refer to the scenario above. Suppose you decide to buy a Toyota Corolla. You value the car for $10,000. You don't know it, but the car dealer values it for $8,500. Which of the following is likely to be true?
A) You will end up buying a high-quality car. B) You will end up buying a bad-quality car. C) You will end up earning a positive consumer surplus. D) You will choose not to buy the car.