The law of diminishing returns
A. is completely invalid.
B. states that if units of a resource are added to a fixed proportion of other resources, eventually marginal product will decline.
C. states that if any two resources are combined, production will fall.
D. states that profit margins decline as output rises.
B. states that if units of a resource are added to a fixed proportion of other resources, eventually marginal product will decline.
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If wages instantaneously adjust to reflect expected inflation that is based on an anticipated increase in the money supply,
A) the aggregate demand and positively sloped aggregate supply curve shift to the right at the same time. B) the positively sloping aggregate supply curve shifts to the left after the aggregate demand curve shifts to the right. C) the positively sloping aggregate supply curve shifts to the left before the aggregate demand curve shifts to the right. D) the positively sloping aggregate supply curve does not shift to the right at the same time as the aggregate demand curve shifts to the left.
Just as the aggregate-supply curve slopes upward only in the short run, the trade-off between inflation and unemployment holds only in the short run
a. True b. False Indicate whether the statement is true or false
If a firm in a competitive labor market offers less than the market wage rate, it will
A. find that it has broken a federal wage law. B. find that the supply is greater than the demand. C. attract too few employees. D. be able to attract a large number of employees because the marginal revenue product is low.
Producers are willing to offer greater quantities for sale at higher prices because
What will be an ideal response?