"If it were not for the law of diminishing marginal returns, the world's wheat could be grown in a flower pot." Explain
The law of diminishing returns states that beyond some level of variable input, such as labor, additional amounts of input add diminishing (but not necessarily negative) amounts of output, other inputs held constant. So, holding land constant, additional amounts of labor or fertilizer yield diminishing additional wheat output. If there were no such law, additional amounts of the variable input would yield constant or increasing marginal output, so additional land would never be needed.
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Which of the following statements is correct?
A) The Fed has difficulty covering its normal expenses, but is reluctant to ask Congress for money. B) The Fed is dependent on the annual appropriations it receives from Congress. C) The Fed's profits are substantial, even when compared to the largest U.S. corporations. D) At one time the Fed made substantial profits, but falling interest rates have greatly reduced them.
Jane is currently developing a model to explain the national unemployment rate. This is an example of
A) a microeconomic topic. B) normative analysis. C) positive analysis. D) how people act in an irrational manner.