A firm experiencing constant returns to scale operates on the horizontal part of the:
a. long-run average total cost curve.
b. marginal cost curve.
c. marginal product curve.
d. total product curve.
Ans: a. long-run average total cost curve.
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According to this Application, by using a value-added approach to measure Wal-Mart's sales impact on the economy, we are
A) including GDP as a measure of welfare. B) using a chain-weighted index. C) avoiding double-counting. D) excluding the net foreign sector.
The majority of money is created when
A) banks make loans. B) new coins are minted. C) the federal government borrows from the public. D) the Fed sells bonds.
Capital per person k is higher in Japan than in the United States. As a result ________
A) per capita income is higher in Japan B) total factor productivity is higher in Japan C) the marginal product of capital is higher in Japan D) all of the above E) none of the above
Which of the following would be primarily determined in factor markets? a. The number of computers produced
b. The wage rates for high school teachers. c. The price of automobiles. d. Sales tax revenues.