There is a famous economics saying that argues if diminishing ...

[JGIBBSON]

There is a famous economics saying that argues if diminishing marginal productivity never set in then the world could be fed from a flower pot. Explain what this means economically.
 
  What will be an ideal response?

Question 2

Banks keep ________ of checking deposits as reserves because on a typical day withdrawals ________ deposits.
 
  A) exactly 100; are much greater than
  B) more than 100; are much greater than
  C) less than 100; are about the same as
  D) less than 100; are much greater than
  E) exactly 100; are about the same as

[BAOCHAU2803]

Answer to Question 1

What this is saying is if diminishing marginal productivity doesn't hold then it would be possible to add more labor and more seed and fertilizer to the flower pot and one would be able to grow as much food as one desired without limit. Of course we know that the flower pot itself is a real limitation and that adding more labor, seed and fertilizer will quickly lead to diminishing returns.

Answer to Question 2

C

[JGIBBSON]

TYSM

[skipfourms123]

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