An aggregate production function shows the relationship between
a. the quantity of inputs used in production and the quantity of output.
b. gross domestic product and national income.
c. workers as inputs and consumers as buyers.
d. production and spending.
e. none of the above.
a. the quantity of inputs used in production and the quantity of output.
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Suppose Michigan’s NOX abatement standard for existing (E) sources is 4 units and the EPA's standard for new (N) sources is 10 units and that MACE = 1.8AEand MACN = 1.2AN. To meet the same combined abatement level of 14 but in a cost-effective manner, the standards for each should be
a. AE = 7; AN = 7 c. AE = 5.6; AN = 8.4 b. AE = 4.8; AN = 7.2 d. none of the above
The Condorcet paradox shows that
a. allocations of resources based on majority rule are always inefficient. b. problems in counting votes can negate legitimate democratic outcomes. c. the order on which things are voted can affect the result. d. transitive preferences are inconsistent with rationality.
An economist observes that a pharmaceutical company is sponsoring a diabetes clinic and providing free medications. She concludes that the pharmaceutical company is concerned not only about profits but also about fair distribution of drugs to those who need them. This economist is most likely a(n):
A. traditional economist. B. irrational economist. C. engineering economist. D. behavioral economist.
Exhibit 21-4 Coffee and tea output (pounds per hour) CountryCoffee Tea Brazil10 5 China 8 8 As shown in Exhibit 21-4, the opportunity cost to Brazil of producing one pound of coffee is:
A. 1 pound of tea. B. 5 pounds of tea. C. 1/2 pound of tea. D. 10 pounds of tea.