In the one-input model of production, increasing marginal product implies non-convexity of the producer choice set.
Answer the following statement true (T) or false (F)
True
Rationale:
Increasing marginal product implies a steepening slope of the production frontier -- with the producer choice set lying underneath it. The dashed line connecting the two points on the frontier lies outside the choice set -- implying that the choice set is non-convex. 
Economics
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Explain how market economies are generally better able to achieve technological progress than are centrally planned economies
What will be an ideal response?
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A government policy that would reduce the saving rate is
A) eliminating the social security system. B) giving tax breaks to increase the real return that savers receive. C) increasing the government budget surplus by cutting government spending. D) switching the tax system to tax consumption instead of income.
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