1. The firm depicted in Table 2.4 is likely to face diminishing returns because:
A) the amount of fertilizer can only be increased to 5.
B) land and fertilizer are both fixed.
C) land and fertilizer are both variable.
D) land is fixed but fertilizer is va
Suppose your bank pays you 5% interest per year on your savings account while prices
increase by 3% per year over that time. Approximately how much nominal value do you gain by
keeping $100 in the bank for a year?
1. The principle of opportunity cost:
A) is more relevant for firms than for individuals.
B) only refers to monetary payments.
C) is only relevant in economics.
D) is applicable to all decision making.
2. As bags of nitrogen applied went from 0 to 1 to 2
1. A group of people has formed a house cleaning and yard maintenance business. The number of
houses or yards that they can clean or maintain in any given day is depicted in Table 2.1. The
opportunity cost of cleaning the third house in a day is:
A) 1 yar
1. Referring to Figure 2.1, if you increase the production of farm goods, what other area is
A) the price of produce
B) the production of factory goods
C) how much people can purchase
D) the wages earned by farm workers
2. On the production poss
1. If a consumer can buy four DVDs for $44 and five DVDs for $50, then the
marginal cost of the fifth DVD is:
2. According to the marginal principle, an individual will do best by producing or
A) marginal be