Which of the following statements about shortages is correct? Shortages are the

Question

Which of the following statements about shortages is correct? Shortages are the same as scarcity Shortages are usually created by price floors When there is a shortage, the highest price that consumers are willing to pay is higher than the lowest price that sellers are willing to accept Unemployment is an example of shortages Which of the following is NOT one of reasons offered by Adam Smith for explaining specialization enhances productivity? Specialization increases the return for formal education Specialization increases dexterity Specialization saves the time wasted when switching from one job to another Specialization gives occasion to new inventions Which of the following statements is INCORRECT (Assume that labor and land are the only two factors of production) Law of diminishing return implies that holding the size of land constant and varying labor input, the marginal product of labor will decrease beyond certain point Constant return to scale implies that when the amount of both factors doubled, total output will also be doubled Under constant return to scale, when the average product of labor is increasing, the marginal product of land must be positive Under constant return to scale, when the marginal product of labor is increasing, the marginal product of land must be negative Which of the following statement is INCORRECT? When marginal product is positive, total product is increasing When marginal product is negative, total product is decreasing When average product is at the maximum, marginal product equals average product When marginal product is at the maximum, average product equals marginal product

Explanation / Answer

1. option number c.

2.option number a.

3.option number c and d both.

4. option number d .

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.