The following is a Cobb-Douglas production function: Q = 1.75K0.5•L0.5 . What is correct here?
a. A one-percent change in L will cause Q to change by one percent
b. A one-percent change in K will cause Q to change by two percent
c. This production function displays increasing returns to scale
d. This production function displays constant returns to scale
e. This production function displays decreasing returns to scale
d
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In the short run, the Federal Reserve can affect which of the following?
A) the growth rate of real GDP in the economy B) the inflation rate C) the unemployment rate D) all of the above
Refer to Figure 10.2. In moving from the competitive level of output and price to the monopoly level of output and price, the monopolist is able to add to producer surplus:
A) the area BCEF. B) the area BCEF less the area GFH. C) the area BCEH. D) the area BCEH less the area GFH. E) none of the above
Which of the following practices is prohibited by the Clayton Act?
a. Price discrimination that substantially lessens competition. b. Tying contracts that substantially lessen competition. c. Exclusive dealing that substantially lessens competition. d. All of these.
The simplified spending multiplier is calculated as:
A. 1/(1 ? MPC). B. ?1/(1 ? MPC). C. ?MPC/(1 ? MPC). D. (1 ? MPC) × ?MPC.