According to the Application, the cultural changes in England allowed individuals to take advantage of
A) the elimination of trade barriers resulting from the formation of the European Union.
B) the decrease in population caused by the number of citizens who were leaving for the New World.
C) new developments in science and technology.
D) the increase in agrarian lifestyles.
Question 2
Diminishing returns, so that each additional hour of labor employed produces successively smaller additional amounts of real GDP, exist because
A) additional workers are paid higher wage rates.
B) labor is not very productive.
C) extra labor produces more output.
D) all other factors are held fixed.
E) the price level rises as more workers are employed.
The American clipper ship, Red Jacket, off Cape Horn, sails from Australia to Liverpool, England, in
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