Suppose that the production function for the economy is: Y = AK1/4L3/4. Assume that A = 1,000, the current capital stock is $32,000 billion, and the labor force is 120 million (or 0.120 billion) workers
All else equal, if the capital stock increased by $8,000, the value of the marginal product of labor will be A) $18,021.09.
B) $20,223.24.
C) $21,625.30.
D) $60,070.29.
A
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The National Football League has long-term leases with the stadiums in major cities. Control of these stadiums is an entry barrier to a potential new football league
Indicate whether the statement is true or false
By designating Federal Reserve currency as legal tender, the federal government
A) has ensured that Federal Reserve currency will serve as money. B) has guaranteed that Federal Reserve currency may be exchanged for an equivalent amount of gold or silver. C) has mandated that Federal Reserve currency be accepted for payment of debts. D) has mandated that Federal Reserve currency be accepted by citizens of foreign countries in exchange for their countries' currencies.
If the economy is underutilizing its economic resources, the Fed should
A) discourage investment spending. B) expand the money supply to increase aggregate demand. C) decrease aggregate supply. D) contract the money supply to decrease aggregate demand.
____ is one in which exactly the amount one competitor gains must be lost by other competitors
a. Nash equilibrium b. Prisoner's dilemma c. A win-win situation d. A zero-sum game