The principle of diminishing returns implies that as one input increases while the other inputs are held fixed, output:
A. increases at an increasing rate.
B. increases at a decreasing rate.
C. decreases at a decreasing rate.
D. decreases at an increasing rate.
Answer: B
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a. matters of fairness b. incentives to work c. incentives to save d. incentives to invest e. incentives to vote
Explain Mathusian trap
What will be an ideal response?
Which is FALSE about perfect competition?
A. Market entry and exit is unrestricted. B. There is no ability to set price. C. There is considerable product differentiation. D. There are numerous sellers.
A movement upward along an upward sloping Engel curve corresponds to
A) upward sloping indifference curves. B) crossing indifference curves. C) a rotation in the budget constraint. D) a parallel shift in the budget constraint.