1. For a firm that has passed the point where the law of diminishing returns has taken effect, adding another input to production means that

1 points

Question 2

1. Which of the following economic terms describes the total value of a nation's goods or services that have been adjusted for inflation?

1 points

Question 3

1. Nancy Murray has $6,000 in demand deposits with the Teachers Credit Union. This means that she has $6,000 in

1 points

Question 4

1. If the demand for peaches increases when the price of pears increases, holding other factors constant, then these goods must be

1 points

Question 5

1. When economists study the national economy or global economy, they are using a ____ approach.

1 points

Question 6

1. If a senior citizen living on a fixed income has to give up buying some food in order to be able to afford to purchase her medication, this is an example of

1 points

Question 7

1. The primary function of the Fed is to

1 points

Question 8

1. An economic system in which individuals and businesses make the decisions about what to produce and what to buy, and the forces of supply and demand determine how much is sold and at what prices, is called a ____ economy.

1 points

Question 9

1. If all leading corporations in the soft-drink industry merged, this would

1 points

Question 10

1. In a perfectly competitive market environment, long-run economic profit equals zero because