We can expect producers to pay:
A. None of these statements is true.
B. less for land with lower productivity.
C. more for land with lower productivity.
D. less for land with higher productivity.
Answer: B
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Refer to Figure 3.2. Which assumption concerning preferences do Alvin's indifference curves violate?
A) Diminishing marginal rates of substitution B) Transitivity of preferences C) More is preferred to less D) Completeness E) both A and C
Use the following table to answer the next question.All figures in the table below are in billions.RGDPC + IExportsImports$500$525$15$1055056015106005951510650630151070066515107507001510If exports increased by $15 billion at each level of real GDP, all other factors constant, then the equilibrium level of real GDP would be
A. $600 billion. B. $650 billion. C. $550 billion. D. $700 billion.
Refer to the above figure. Line EBD is called
A. the 45-degree line. B. the saving function. C. aggregate demand. D. the consumption function.
Which of the following statements explains the difference between diminishing returns and diseconomies of scale?
A) Diminishing returns apply only to the short run; diseconomies of scale apply only in the long run. B) Diminishing returns cause a firm's marginal cost curve to rise; diseconomies of scale cause a firm's marginal cost curve to fall. C) Diminishing returns are the result of changes in explicit costs. Diseconomies of scale are the result of changes in explicit costs and implicit costs. D) Diminishing returns refer to production while diseconomies of scale refer to costs.