When total product is increasing at a decreasing rate, marginal product is:
A. positive and increasing.
B. positive and decreasing.
C. constant.
D. negative.
Answer: B
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Refer to the Article Summary. If the Federal Reserve's announcements about upcoming monetary policy decisions are not seen as credible, as Senator Pat Toomey alludes to regarding the Fed's changing projections as to when they would increase interest
rates, which of the following would you expect to see? A) Inflation expectations will accurately reflect actual inflation. B) Expansionary monetary policy will result in lower rates of inflation. C) The Federal Reserve will have more control over the inflation rate. D) Firms and workers will be unable to accurately forecast changes in the rate of inflation.
Marginal benefit is the total benefit to a consumer from consuming one more unit of a good or service
Indicate whether the statement is true or false
In the balance of payments, the buying and selling of real and financial assets is represented in
A) current account. B) capital account. C) labor account. D) official reserve transactions account.
The interest rate effect explains that higher prices
a. make it more expensive to borrow, leading to higher interest rates and less investment b. make people worse off by reducing the value of their wealth, leading them to save more and spend less c. decrease borrowing, leading to higher interest rates and less investment d. decrease borrowing, leading to lower interest rates and more investment e. increase borrowing, leading to higher interest rates and less investment