With constant returns to scale and factor prices invariant with the amount of factors used, the long-run output expansion path is
A. zero.
B. a straight line.
C. horizontal.
D. U-shaped.
Answer: B
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An exchange rate system under which currencies are allowed to fluctuate with frequent interventions by central banks is called a
A) freely floating system. B) fixed system. C) managed floating system. D) None of the above.
Innovation is the process of turning an invention into a marketable product
a. True b. False
Which of the following is a true statement concerning federal transfer payments?
A. Transfer payments ultimately must be repaid to the government by recipients. B. Transfer payments are included in the imports category of GDP. C. Transfer payments are included in the net exports category of GDP. D. Transfer payments are payments made by the government for which no good or service is currently received in return.
Suppose that a male police officer earns more than a female administrative assistant, but they both have the same amount of education. The difference in wages:
A. can be attributable to the increased danger of being a police officer. B. must be due to discrimination against women among police departments. C. will disappear once the labor market has reached equilibrium. D. is a violation of anti-discrimination laws.