What are two reasons diminishing returns to specialization occur? (Check both responses.)
What will be an ideal response?
Different goods use resources in different proportions.
Not all resources are of the same quality.
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The following data relate to the supply schedule of a product.PriceQuantity Supplied$51001020015250203002535030500Using the regular percentage change formula, what is the price elasticity of supply when price decreases from $10 to $5?
A. perfectly elastic B. unit elastic C. elastic D. inelastic
A good that is both nonexcludable and nonrival-in-consumption is called a
a. common good. b. external good. c. public good. d. private good.
Differences in human capital are likely to
a. be unrelated to wage rate differences across gender classifications, since both men and women are required to complete requirements for a high school diploma. b. be most helpful in explaining age discrimination, but unhelpful in explaining race discrimination. c. explain some of the differences in average wage rates across age classifications. d. explain all of the differences in average wage rates across gender classifications.
When the interest rate falls, bond values
A. rise. B. fall. C. are unchanged because the interest rate paid on a bond is fixed. D. will either increase or decrease depending on the type of bond.