Diminishing marginal product means that ________
A) when adding extra units of a single input, output increases become smaller
B) when adding extra units of a single input, output increases become larger
C) when adding extra units of a single input, output declines
D) the amount of output increases when we add more inputs
E) none of the above
A
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A demand curve is said to be inelastic if:
a. ED = 1 b. ED = 0 c. ED > 1 d. ED < 1
If the price of oil, a close substitute for coal, increases then the
a. supply curve for coal will shift to the right. b. demand curve for coal will shift to the right. c. equilibrium price and quantity of coal will not change. d. demand curve for coal will shift to the left. e. supply curve of coal will shift to the left.
When the government runs a deficit, the interest rate tends to:
A. fall. B. rise. C. remain unchanged. D. rise or fall, depending on how the deficit is financed.
The market and public sector are similar in that
A. there is competition among the participants in both sectors. B. the participants in both sectors react to incentives. C. the resources used in both sectors are scarce. D. All of these are true.