When the marginal product of labor exceeds the average product of labor, the average product must increase when employment increases
Indicate whether the statement is true or false
TRUE
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The law of decreasing returns states that as a firm uses more of a
A) fixed input, with a given quantity of variable inputs, the marginal product of the fixed input eventually decreases. B) variable input, total output will increase indefinitely. C) variable input, with a given quantity of fixed inputs, the marginal product of the variable input eventually decreases. D) variable input, output will begin to fall immediately. E) fixed input and a variable input, the marginal product of the fixed input and the marginal product of the variable input both decrease.
New growth theory emphasizes all of the following EXCEPT
A) technology. B) import restrictions. C) research and development. D) innovation.
Japan exports cars to the other countries of the world. In an open economy Japan is most likely to have a domestic price that is ________ the world price of cars.
A. greater than B. close to C. equal to D. less than
An economy that does NOT trade with the rest of the world is a(n)
A. open economy. B. command economy. C. closed economy. D. trade economy.