Refer to the graph below. It shows the total product (TP) curve. At which point does diminishing marginal returns set in?

Refer to Figure 13-7. Which of the following statements describes the best course of action for the firm depicted in the diagram?

A) The firm should exit the industry because its price is less than its average total cost. B) The firm should minimize its losses by producing Qy units and charging a price of P0. C) The firm should minimize its losses by producing Qy units and charging a price of P1. D) The firm should minimize its losses by producing Qy units and charging a price of P2.

Expressing the U.S. federal budget deficit as a percentage of Gross Domestic Product (GDP)

A) results in inflation-adjusted revenue and expenditure numbers. B) helps us understand the size of the deficit relative to the size of the economy. C) was useful through the 1980s, but is no longer helpful because both the deficit and real Gross Domestic Product (GDP) have grown so large. D) is only useful if the budget deficit is rising at an annual rate of more than 4 percent.