The above table shows the short-run total product schedule for the campus book store. When the book store hires the 3rd employee
A) the bookstore is still experiencing increasing marginal returns.
B) the book store has already begun to experience diminishing marginal returns, but average product is still rising.
C) both marginal and average product have already begun to decline.
D) marginal product is at its maximum.
A
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During the 1990s, which of the following experienced the slowest rate of growth in real GDP per person?
A) Japan B) The big 4 nations of Europe C) United States D) Canada
If the government wishes to correct the existence of positive externality, it could
A) grant subsidies to consumers to stimulate demand. B) impose a tax on the producers to stimulate supply. C) impose taxes on consumers to stimulate demand. D) grant subsidies to producers to reduce supply.