If Macroland's MPC is 0.8, then we know MPS = 1.8 from the relation MPS = 1 + MPC
Indicate whether the statement is true or false
F
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A construction company builds roads with machinery (capital, K) and labor (L)
If we plot the isoquants for the production function so that labor is on the horizontal axis, then a point on the isoquant with a small MRTS (in absolute value) is associated with high ________ use and low ________ use. A) labor, capital B) capital, labor C) concrete, gravel D) none of the above
Explain how the free-market mechanism adjusts prices so that resource allocation is economically efficient.
What will be an ideal response?
In the short run, a firm operating in a monopolistically competitive market can earn
a. positive economic profits. b. economic losses. c. zero economic profits. d. All of the above are possible.
Which of the following transactions is included in GDP?
A. Social Security check received by an elderly couple B. funds received by a college student for working in the college dining hall C. funds given to a family on welfare D. funds given to a college student by her parents