After trade opens, the short run impact on the income of the variable factor will be
A) a decrease.
B) an increase.
C) zero.
D) indeterminate, depending on the consumption pattern of the owners of the variable factor.
D
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Which of the following statements is true?
A. Diminishing marginal returns sets in after marginal product intersects average product B. Diminishing marginal returns means that in order to increase output at a constant rate, the firm must add larger and larger quantities of the variable inputs C. Diminishing marginal returns implies that there will never be increasing returns to scale D. Diminishing marginal returns implies that the firm's profits will be shrinking
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.