From the profit maximizing conditions for the Cobb-Douglas production function, we find that the optimal input demands for labor and capital may be related as L = brK/(aw). Under what conditions are the expenditures on capital and labor equal?
A) Constant returns to scale
B) Increasing returns to scale
C) Decreasing returns to scale
D) a = b
D
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The price of silver increases from $10 per ounce to $15 per ounce while the price of gold increases from $300 per ounce to $310. In this situation, the price of silver relative to the price of gold has
a. fallen. b. risen. c. remained the same. d. cannot be determined given the information provided.
What is the Antitrust Division of the Department of Justice?
What will be an ideal response?
Investment and saving decisions are assumed by economists to depend on the ________ interest rate
A) expected nominal B) nominal C) expected real D) real
What is the primary function of the Term Asset-Backed Securities Loan Facility?
A. Provide funding support for collateralized securities such as student, auto, and credit card loans. B. Provide securities loans to primary dealers for one-month terms. C. Provide overnight loans to primary dealers willing to post loan-backed securities as collateral. D. Provide loans to U.S. financial institutions to purchase commercial paper.