The figure above shows the U.S. production function. How would an increase in capital be shown in the figure?
A) an upward shift or rotation of the production function
B) a downward shift or rotation of the production function
C) a movement from point A to point B
D) a movement from point C to point B
E) None of the above because the effects of an increase in capital cannot be shown in the figure.
A
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A profit maximizing firm selects output such that
A) average profit is maximized. B) total profit is maximized. C) marginal profit is maximized. D) Both A and B.
An individual who is a risk lover
a. values a lottery at more than its expected value b. values a lottery at exactly its expected value c. values a lottery at less than its expected value d. tends to play lots of lotteries
Comparing the mobility of U.S. workers at the bottom of the income distribution to European workers in the same situation shows that U.S. workers are
a. more mobile in moving from lower to higher quintiles during their working lives b. less mobile in moving from lower to higher quintiles during their working lives c. paid more but remain at the bottom longer d. paid less and remain at the bottom longer e. more likely to leave their country (U.S.) to find work elsewhere
The currency deposit ratio, c, is 0.10. The reserve requirement, rr, is 0.07. The excess reserve ratio, e, is 0.10. What is the size of the money multiplier?
A) 4.70
B) 4.07
C) 4.75
D) 4.00