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1. If the international oil price keeps rising, then we can expect the supply curves of products using oil to _________________.
a. shift outward to the right
b. remain unchanged
c. shift inward to the left
d. the supply curve itself will still be the same, except that its slope tilts rightward
2. One way to view the law of diminishing marginal productivity is to say that ____________.
a. as more and more inputs (e.g., labor) are added to the production process, there will come a point where the marginal productivity will actually fall and even become negative.
b. as more and more inputs are added to the production process, there will not be a change to total productivity.
c. adding inputs to the production process will cause marginal productivity to keep rising infinitely, because, like money, there can never be enough supplies.
d. as more and more units of input are added, the total product becomes ever lower.