As successive equal increases in a variable factor of production are added to fixed factors of production, there will be a point beyond which the extra product that can be attributed to each additional unit of the variable factor of production will
decline. This is known as the law of
A) diminishing total product.
B) diminishing average product.
C) diminishing marginal product.
D) decreasing product.
Answer: C
Economics
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A surplus of wheat:
a. is impossible if people are hungry. b. is impossible if the price of wheat is below equilibrium. c. will result when the quantity demanded exceeds the quantity supplied at the current price. d. is unlikely to cause any change in the price of wheat. e. indicates that the problem of scarcity of wheat has been solved.
Economics
The freedom of individuals to start and operate private business in search of profits is known as
A. consumer sovereignty. B. laissez-faire. C. centralized decision making. D. free enterprise.
Economics