The law of diminishing returns assumes that
A) there is at least one fixed input.
B) all inputs are changed by the same percentage.
C) additional inputs are added in smaller and smaller increments.
D) all inputs are held constant.
A
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If the purchase and sale of a currently illegal drug (for example, marijuana) were decriminalized, economists would expect
A) an increase in demand and supply of this drug. B) an increase in demand and a decrease in supply of this drug. C) a decrease in demand and an increase in supply of this drug. D) a decrease in demand and supply of this drug.
An indifference curve
A) must slope downward towards the right. B) is positively sloped. C) is upsloping and is concave to the origin. D) may be upsloping or downsloping, depending on whether the two products are complements or substitutes.