The principle of diminishing marginal product states:
A. the total output produced increases as the quantity of the input increases.
B. the marginal product of an input decreases as the quantity of the input increases.
C. the marginal product of an input eventually will be negative.
D. the total output produced decreases as the quantity of the input increases.
B. the marginal product of an input decreases as the quantity of the input increases.
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Antitrust laws prohibit undesirable business practices by firms holding monopoly power
a. True b. False Indicate whether the statement is true or false
If the political leaders of a country want to promote economic growth, which of the following policy alternatives would be most effective?
a. imposition of price controls on agricultural products in an effort to keep food cheap b. a public-sector investment program financed by highly progressive taxation c. low taxes, a monetary policy consistent with long-run price stability, and the abolition of price controls and trade restrictions d. expansionary monetary policy designed to keep interest rates low