Assuming that total factor productivity is constant, describe the effect of an increase in the capital-labor ratio on the per worker production function
What happens to the marginal product of labor, the marginal product of capital, and real GDP per capita?
The economy will move up along the per worker production function. The marginal product of labor will increase at a decreasing rate, the marginal product of capital will decrease, and real GDP per capita will increase.
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Refer to the below graph. A change from Point A to Point C represents a(n)
a. increase in supply.
b. decrease in supply.
c. increase in quantity supplied.
d. decrease in quantity supplied.
How does technological advance affect the demand for labor?
According to the figure shown, Nike:
A. will reach an optimum outcome by acting in its own self-interest. B. has a dominant strategy to charge a high price. C. has a dominant strategy to charge a low price. D. does not have a dominant strategy.
When there is an external benefit, the unregulated market
A) overproduces the good or service. B) underproduces the good or service. C) reaches the most efficient solution. D) maximizes public welfare.