Category: Economics

➤ Why does marginal product fall under diminishing returns?
Marginal product falls because at least one input is fixed in the short run. Adding more labor or hours leads to overcrowding of fixed capital, reduced per-worker access to tools, and coordination frictions. These effects make each extra unit of labor contribute less additional output than earlier units.

➤ Why does a fall in costs produce a curve shift rather than a movement along it?
Price changes cause movements along a supply curve. Cost changes are non-price factors, so they shift the entire curve. When costs fall, sellers can offer more at the same price, moving the curve right. When costs rise, the curve shifts left. Separate ‘quantity supplied’ (movement) from ‘supply’ (shift).

If a farmer buys a new tractor from John Deere for use on her cotton farm, it is included in GDP as a
durable consumption good.
a service.
part of private investment.
a nondurable consumption good.

➤ How do companies build strong customer relationships?
They collect and analyze customer data, personalize communications, and deliver consistent service across channels. Firms implement CRM platforms, loyalty programs, proactive support, feedback loops, and tailored offers. They measure engagement and lifetime value, and they listen and respond regularly to strengthen trust and encourage repeat purchases.

Executive orders:require government officials to resignrequire private citizens to do certain thingsrequire agencies to do certain thingsnone of the other choicesrequire businesses to pay taxes

Which of the following best describes the process in which a country’s central government gives more power to local or regionalgovernments?rational-legal legitimacyrevolutionevolutiondevolution