Diminishing marginal returns occur when
A) the average product of the variable input eventually diminishes.
B) the marginal product of an additional worker is less than the marginal product of the previous worker hired.
C) the firm hires cheap, less-skilled workers in place of expensive, high-skilled workers.
D) total product diminishes.
B
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The idea that consumers will not consistently discount the future over time is known as ________
A) intertemporal choice B) tertiary inversion C) hyperbolic discounting D) antediluvian Machiavellianism
If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real risk-free interest rate and quantity of real loanable funds per time period if there is a decrease of the real money supply and an increase in the government's budget deficit?
a. The real risk-free interest rate rises and the quantity per time period falls. b. The real risk-free interest rate rises and the quantity per time period rises. c. The real risk-free interest rate does not change and the quantity per time period rises. d. The real risk-free interest rate is uncertain and the quantity per time period rises. e. The real risk-free interest rate is rises and the quantity per time period is uncertain.