When increasing amounts of a variable factor are added to a fixed factor, the output increases, but at a diminishing rate.

How does a command-and-control policy differ from a market-based policy?

What will be an ideal response?

In the standard 45-degree line expenditure model, the C + I line and the C line are parallel because,

a. all I is assumed to be autonomous. b. all I is assumed to be induced. c. consumption depends on disposable income. d. I rises with GDP at the same rate as C.