Question

1.If copyright laws were made tougher and were more strictly enforced, companies would be encouraged to

Select one:

a. purchase more plants and equipment.

b. hire more labor.

c. engage in more R&D activity.

d. hire less labor.

e. None of these

2.Diminishing returns to labor means that

Select one:

a. the greater the amount of output, the less labor that is needed.

b. as more labor is employed, total output declines.

c. as more labor is employed, each additional worker produces less additional output.

d. as more labor is employed, total output will increase.

e. the greater the amount of output, the less additional labor that is needed

The productivity curve shifts upward as a result of

Select one:

a. less technology.

b. more technology.

c. less capital.

d. more capital.

e. a higher population.

Answer 1

1. c. Engage in more R&D activity is something that companies would be encouraged to do if copyright laws were made tougher and were more strictly enforced. Whereas the remaining ones are not relevant in this context.

2. b. As more labor is employed, total output declines is something that diminishing returns of labor mean. Whereas the remaining ones are not applicable in this context.

b. More technology results in the productivity curve shift upward. Whereas the remaining ones are not appropriate in this context.