If marginal product rises, then marginal costs rise.
Indicate whether the statement is true or false
QUESTION 2Assume that the average salary for male professors at a university was 110,000 and the average salary for female professors at the same university was 95,000 . Based on this information, can we conclude that this university engages in gender discrimination? Why or why not?
QUESTION 3Which of the following strategies are adopted by a business tycoon when the first new management of the purchased company fails?
a. He tries a second management team.
b. He tries to train and motivate the existing management team.
c. He sells off part of the company in the market.
d. He tries to reduce the cost of production by lowering output.
QUESTION 4At first marginal product rises and then it falls.
Indicate whether the statement is true or false
QUESTION 5Many health economists believe that health-care reform will:
a. decrease demand for new, better, and more expensive medical advances.
b. lower premiums for young adults.
c. eliminate private health insurance entirely.
d. have a very limited effect on reducing government health-care expenditures.
QUESTION 6A situation in which an individual has no information about probabilities and the underlying distributions of the possible outcomes of an investment choice is called:
a. a prior distribution.
b. updating.
c. risk tolerance.
d. pure uncertainty.
QUESTION 7The law of diminishing marginal returns describes changes in output when inputs change.
Indicate whether the statement is true or false
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