The fact that the production function relating output to labor becomes flatter as we move from left to right means that
A) the marginal product of labor is positive.
B) the marginal product of capital is positive.
C) there is diminishing marginal productivity of labor.
D) there is diminishing marginal productivity of capital.
C
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The figure above shows the market for a good with an external benefit. If the market is competitive and the government takes no action, the equilibrium quantity is ________ units and the equilibrium price is ________ per unit
A) 8; $150 B) 8; $300 C) 10; $250 D) 10; $100 E) 10; $150
In the Keynesian model in the short run, a decrease in government purchases causes output to ________ and the real interest rate to ________
A) fall; rise B) fall; fall C) rise; rise D) rise; fall
The yield to maturity is equal to
A) the interest rate at which the present value of an asset's returns is equal to its price today. B) the face value or par value of a coupon bond. C) any payments received from an asset at the date the asset matures. D) interest rate on the asset minus any taxes owed on the interest received.
How is inflation targeting consistent with the "dual mandate" of price stability and maximum employment?
What will be an ideal response?