What does the Law of Diminishing Marginal Product state?
What will be an ideal response?
The Law of Diminishing Marginal Product states that the marginal contribution of an input to output is smaller when more of this input is being used in production.
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If velocity is constant then targeting the money supply and nominal GDP is
A) effectively an interest rate target. B) effectively a real GDP target. C) effectively the same thing. D) inherently inconsistent.
Which of the following is an example of a negative externality (additional social cost)?
A. an increase in the value of land you own when a nearby development is completed B. the costs paid by a company to build an automated factory C. the higher price you pay when you buy a heavily advertised product D. falling property values in a neighborhood where a disreputable nightclub is operating