Which of the following factors can lead to an increase in demand for coffee at Starbucks?
A. An increase in the price of coffee beans
B. An increase in the price of sugar
C. A 10 percent decline in local population
D. An increase in household income
Answer: D
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If the government begins to run a larger budget deficits, then assuming there is no Ricardo-Barro effect, the demand for loanable funds ________ and the real interest rate ________
A) decreases; falls B) decreases; rises C) increases; rises D) increases; falls
Which of the following best describes the law of diminishing returns?
a. The principle that beyond some point the marginal product decreases as additional units of a variable factor (ex: labor) are added to a fixed factor (ex: a restaurant kitchen). b. The concept that as a person consumes more and more of a good, such as pizza slices, that the marginal utility from each additional slice will decline. c. The empirical fact that the profitability of firms declines in the long run due to increasing competition. d. None of the above.
According to the classification in the text, which of the following is not an industrially advanced country (IAC)?
a. United Arab Emirates. b. Israel. c. Greece. d. All of the above are IACs. e. None of the above are IACs.
If a firm is experiencing diminishing returns to a variable input, then:
a. it must be hiring less-productive units of the variable resource. b. it must be experiencing diseconomies of scale. c. the marginal physical product of the variable input must be decreasing. d. the average physical product of the variable input must be decreasing. e. its total product must be decreasing.