Suppose the production function for good q is given by q = 3K + 2 L where K and L are capital and labor inputs. Consider three statements about this function: I. The function exhibits constant returns to scale. II. The function exhibits diminishing marginal productivities to all inputs. III. The function has a constant rate of technical substitution. Which of these statements is true?
a. All of them.
b. None of them.
c. I and II but not III.
d. I and III but not II.
e. only I.
d
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The unemployment rate is the number of people unemployed divided by the
A) number of people employed, then multiplied by 100. B) working-age population, then multiplied by 100. C) labor force, then multiplied by 100. D) labor force participation rate, then multiplied by the population. E) population, then multiplied by 100.
The data in the above figure indicate that the economy will be in a long-run macroeconomic equilibrium at a price level of
A) 140. B) 130. C) 100. D) 120.
Inflation rates during the years 1979-1981 were the highest the United States has ever experienced during peacetime
Indicate whether the statement is true or false
Marginal analysis is useful to a firm that seeks to
A. maximize its profits, but not minimize its losses. B. minimize its losses, but not maximize its profits. C. both maximize its profits and minimize its losses. D. neither maximize its profits nor minimize its losses.