If a production function has the property called __________, then doubling all inputs causes the amount of output to double as well
Fill in the blank(s) with correct word
constant returns to scale
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A barter economy refers to a situation in which goods and services are traded for other goods and services, with no money involved in transactions. The major shortcoming of a barter economy is
A) transactions cannot take place without money. B) the requirement of a double coincidence of wants. C) government has no way of collecting taxes. D) goods and services have no way of storing value.
If the above figure illustrated a perfectly competitive industry, the equilibrium market price would be equal to
A) $4. B) $7. C) $9. D) $11.
Which of the following is an example of an in-kind transfer?
a. welfare payments b. most Social Security benefits c. unemployment compensation payments d. food stamps e. charitable contributions
In long-run full-employment equilibrium, which of the following is true? a. The CPI equals AD equals the peak of the production function curve
b. The horizontal LRAS curve equals the intersection of the demand and supply curves inthe labor market. c. The CPI equals the aggregate production function at the equilibrium wage rates. d. The CPI equals AD equals SRAS equals LRAS.