Which of the following is true at the point where diminishing returns set in?

Which of the following is true at the point where diminishing returns set in?
 a. Both marginal product and marginal cost are at a maximum.
  b. Both marginal product and marginal cost are at a minimum.
  c. Marginal product is at a maximum and marginal cost at a minimum.
  d. Marginal product is at a minimum and marginal cost at a maximum.

QUESTION 2

If the government of a country owes 3,500 billion to the International Monetary Fund and then borrows 300 billion more this year, it implies that the:
 a. national debt is 300 billion and fiscal deficit is 3.8 trillion.
  b. national debt is 3,800 billion and fiscal deficit is 300 billion.
  c. national debt is 4,100 billion.
 d. fiscal deficit is 3,800 billion.
 e. national debt and fiscal deficit both equal 3.8 trillion.

QUESTION 3

Compare and contrast the four market models in terms of the profit-maximizing output level for each, the shut-down rule for each, the probability of long-run economic profits being earned, and their social desirability.

QUESTION 4

Which of the following statements is true?
 a. The law of diminishing returns states that beyond some point the marginal product of a variable resource continues to rise.
  b. The marginal product is the change in total output by adding one additional unit of a fixed input.
  c. Fixed costs are costs which vary with the output level.
  d. When marginal productivity of a variable input is falling then marginal costs of production must be rising.
  e. When marginal cost is below average cost, average cost rises; when marginal cost is above average cost, average cost falls.

QUESTION 5

A federal policy that leads to an increase in aggregate supply is likely to result in:
 a. lower levels of employment.
 b. an increase in aggregate demand.
  c. a higher price level.
 d. lower levels of real GDP.
 e. an economic expansion.

QUESTION 6

What are the characteristics of an oligopoly?

QUESTION 7

Which of the following must be true if average total cost is rising?
 a. Average fixed cost must be rising.
  b. Total fixed cost must be rising.
  c. Average variable cost must be falling.
  d. Marginal cost must be greater than average total cost.