All else equal, if there are diminishing returns, then what happens to productivity if both capital and labor increase?
a. Productivity will definitely fall.
b. Productivity will definitely be unchanged.
c. Productivity will definitely rise.
d. None of the above are necessarily correct.
d
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If Nick consumes only two goods, oranges and plums, and he increases his consumption of oranges, then
a. the price of oranges must have increased b. Nick's income must have increased c. plums and oranges must be complements d. he must reduce his consumption of plums to remain on the same indifference curve e. Nick's MU/P of oranges will now increase
If more foreign steel plants relocate to the United States, we would expect
A) the U.S. supply curve for steel to shift to the right. B) the U.S. supply curve for steel would shift to the left. C) that the U.S. steel market would not respond. D) that U.S. steel demand might change, but U.S. steel supply would remain the same.