When a firm's marginal productivity declines as output increases, then the firm is experiencing
a. Diminishing returns to scale
b. Constant returns to scale
c. Increasing returns to scale
d. Increasing marginal product
a
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In the loanable funds market, a shortage of loanable funds occurs when the
A) supply of loanable funds exceeds demand for loanable funds. B) quantity of loanable funds supplied exceeds the quantity of loanable funds demanded. C) demand for loanable funds exceeds supply of loanable funds. D) supply of loanable funds curve shifts rightward. E) quantity of loanable funds demanded exceeds the quantity of loanable funds supplied.
In a budget line/indifference curve diagram, at the consumer equilibrium
A) any movement upward or downward on the budget line will move the consumer to a less preferred point. B) any movement to the northeast to higher indifference curves moves the consumer to a less preferred point. C) the slope of the budget line is as much larger as possible than the marginal rate of substitution. D) All of the above statements are correct.