Diminishing marginal returns means that as you combine more units of a variable resource with a set of fixed resources:
a. the average physical product of the fixed inputs increases at an increasing rate.
b. the marginal physical product of the variable input decreases.
c. the total output decreases.
d. the marginal physical product of the variable input increases at a constant rate.
e. the marginal physical product of the variable input increases at a decreasing rate.
b
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Which of the following statements is correct about the extent of disagreement among economists?
a. There is a great deal of agreement among economists on virtually every economic issue. b. There is a great deal of agreement among economists on many important economic issues. c. All disagreements among economists are attributable to differences in their values. d. All disagreements among economists are attributable to the fact that different economists have different degrees of faith in the validity of alternative economic theories.
Which of the following is an appropriate fiscal policy prescription for the government to follow?
A. Deficit reduction during a recession. B. Deficit reduction during a war. C. Deficit reduction when there is excess AD. D. Deficit expansion in an inflationary gap.
In the United States, credit cards account for about what percentage of the dollar volume of transactions for goods and services?
A. 10 percent B. 65 percent C. 40 percent D. 25 percent
The elasticity of supply of product X is unitary if the price of X rises by:
A. 5 percent and quantity supplied rises by 7 percent. B. 8 percent and quantity supplied rises by 8 percent. C. 10 percent and quantity supplied stays the same. D. 7 percent and quantity supplied rises by 5 percent.