Which of the following is true?
A) The Cobb-Douglas production function exhibits increasing returns to scale.
B) The sum of the coefficients of capital and total efficiency units of labor in a Cobb-Douglas production function is less than 1.
C) The Cobb-Douglas production function exhibits constant returns to scale.
D) The sum of the coefficients of capital and efficiency units of labor in a Cobb-Douglas production function is greater than 1.
C
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An official agreement with another country to restrict the quantity of its exports to the U.S. is
A) a regional trade bloc. B) the quota system. C) a voluntary import expansion. D) a voluntary restraint agreement.
Which of the following properties can be associated with an indifference curve of a risk-averse investor?
a. Indifference curve for a risk-averse investor is a vertical line parallel to the variance axis. b. Two indifference curves can intersect at the equilibrium combination of risk and return. c. An indifference curve closer to the expected return axis gives a better utility than the one farther away. d. Indifference curve for a risk-averse investor is always downward sloping.
Fiscal policy affects the ________ market through changes in taxes and government spending.
A. money B. goods C. bond D. federal funds
The figure above shows a monopoly's total revenue and total cost curves. The monopoly's economic profit is positive if it produces between
A) 0 and 5 units. B) 0 and 15 units. C) 0 and 20 units. D) 5 and 20 units.