When a firm is experiencing diminishing marginal returns, marginal cost is

Which of the following statements is true?

A) Technological innovation can cause wages to fall for some workers. B) Technological innovation increases wages for all workers in an economy. C) Technological innovation always leads to unemployment in the economy as a whole. D) Technological innovation reduces the demand for goods and services in an economy.

Which of the following is most likely to happen if aggregate consumption in an economy falls steeply?

A) Asset prices rise. B) Mortgage defaults fall. C) Labor supply falls. D) Firm bankruptcies rise.