Author Question: Evaluate the following statement. If marginal product is falling it will bring down the average ... (Read 58 times)

Medesa

  • Hero Member
  • *****
  • Posts: 507
Evaluate the following statement. If marginal product is falling it will bring down the average product.
 
  What will be an ideal response?

Question 2

A one-time tax rebate, which is not expected to be extended in future years, will
 
  A) have a significant positive effect on consumption and aggregate demand, with aggregate demand growing by a multiple of the tax rebate.
  B) have no effect on consumption and aggregate demand.
  C) increase aggregate supply and aggregate demand.
  D) have a moderately positive effect on consumption and aggregate demand.



eliasc0401

  • Sr. Member
  • ****
  • Posts: 338
Answer to Question 1

This statement is not necessarily true. If marginal product is falling but still above average product then the average product will rise. However, if it is below average product then indeed it will bring average product down with it.

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

For a complete list of videos, visit our video library