Constant returns to scale means that, given any constant x > 0
A) xzF(xK, xNd)= zF(xK, xNd).
B) xzF(xK, xNd) > zF(xK, xNd).
C) xzF(xK, xNd) < zF(xK, xNd).
D) xzF(xK, xNd) = zxF(K, Nd).
A
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In our study of monopoly, we found that monopolists can increase profit by segmenting the market and price discriminating (under third degree price discrimination). Now suppose a firm is producing an excludable local public good. Can you justify a form of such market segmentation and price discrimination as efficient?
What will be an ideal response?
Under perfect capital mobility, fiscal policy has the largest impact on the income under:
a. fixed exchange rates. b. floating exchange rates. c. dollarization. d. a currency union.
Unless two people who are producing two goods have exactly the same opportunity costs, then one person will have a comparative advantage in one good, and the other person will have a comparative advantage in the other good
a. True b. False Indicate whether the statement is true or false
When government revenue is less than government spending, the nation has a:
A. government budget surplus. B. trade deficit. C. trade surplus. D. government budget deficit.