Bill lives in Montana and likes to grow zucchini. He applies fertilizer to his crops twice during the growing season and notices that the second layer of fertilizer increases his crop, but not as much as the first layer. What economic concept best explains this observation?
A. The law of diminishing marginal utility.
B. The law of diminishing returns.
C. Return equalization principle.
D. The principal-agent problem.
Answer: B
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When money is used to express the value of goods and services, it is functioning as a
A) medium of exchange. B) store of value. C) store of purchasing power. D) unit of account.
Which of the following will change only the quantity demanded of oranges?
A) an increase in the population B) a change in the price of tangerines C) a change in the price of oranges D) a decrease in the taste and preferences for oranges
If this firm produced at its most efficient output level it would produce _______ units.
A. 50
B. 80
C. 90
D. 100
Consider the effect of each of the following on the unemployment? rate: a. The minimum wage law
What will be an ideal response?