6. As firms use more and more of an input, ________.

a. the price of the input may increase

b. the marginal product ofotherinputs tends to increase

c. the marginal product of the input declines

d. all of the above

e. none of the above

7. Diminishing marginal product means that ________.

a. when adding extra units of a single input, output increases become smaller

b. when adding extra units of a single input, output declines

c. the amount of output increases when we add more inputs

d. when adding extra units of a single input, output increases become larger

e. none of the above

8. During the Great Recession of 2007-2009, the U.S. ________.

a. experienced the most severe economic downturn since the Great Depression

b. experienced unprecedented declines in household wealth

c. the unemployment rate more than doubled

d. all of the above

e. none of the above

15. In a business cycle, a period from peak to trough may be referred to as ________.

a. a contraction

b. an expansion

c. a recurrence

d. all of the above

e. none of the above

16. In a business cycle, a period from trough to peak may be referred to as ________.

a. an expansion

b. a recurrence

c. a contraction

d. all of the above

e. none of the above

27. Only when the goods market is in equilibrium is it true that ________.

a. the amount of goods and services produced equalsactualexpenditure

b. demand for foreign goods equals foreigners' demand for domestic goods

c. plannedexpenditure equals the amount of goods and services produced

d. actualexpenditure equals output

e. none of the above

36. The marginal product of labor (MPL) is given by the ________.

a. labor share of income - average output per unit of labor

b. labor share of income + average output per unit of labor

c. labor share of income average output per unit of labor

d. labor share of income average output per unit of labor

e. none of the above

42. Which of the following constitutes an input to the Cobb-Douglas production function?

a. capital

b. total factor productivity

c. labor

d. all of the above

e. none of the above

48. Which of the following would lead domestic investment to rise?

a. a decline of government spending throughout the world

b. a decrease in world autonomous consumption

c. an increase in world taxes

d. all of the above

e. none of the above

49. Who helps calculate GDP in the United States?

a. the Census Bureau

b. the Bureau of Labor Statistics

c. the Bureau of Economic Analysis

d. all of the above