The law of diminishing marginal returns says that as the firm uses more of ________, with a given quantity of ________, the ________ product of the variable input eventually diminishes

In the short run, specific taxes on a firm result in

a. price increases that may not persist in the long run. b. an increase in consumer surplus because the tax permits spending in additional government services. c. shortages of the good being taxed. d. an increase in producer surplus because of the rise in price.

A country can achieve some combination of goods outside its production possibilities curve by:

A. idling some of its resources. B. specializing and engaging in international trade. C. buying the debt (bonds and stocks) of foreign nations. D. producing more capital goods and fewer consumer goods.