Use the information provided in Table 7.2 below to answer the question(s) that follow.
Table 7.2Inputs Required to Produce a Product Using Alternative Technologies
Refer to Table 7.2. If the hourly price of labor is $10 and the hourly price of capital is $1, which production technology should be selected?
A. A
B. B
C. C
D. D
Answer: A
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When the real interest rate falls, there is
A) an upward shift of the consumption function. B) an increase in the slope of the consumption function. C) a movement upward along the consumption function. D) a decrease in the slope of the consumption function. E) a downward shift of the consumption function.
A decrease in price allows a consumer to attain a higher indifference curve
Indicate whether the statement is true or false
The Federal Reserve Board of Governors consists of
a. 50 members selected by state legislatures b. 12 members, one from each Federal Reserve District c. 12 members nominated by the President and confirmed by the Senate d. seven members elected by Congress e. seven members nominated by the President and confirmed by the Senate
Because of diminishing returns, a factor in abundant supply has a
a. high marginal product and a high rental price. b. high marginal product and a low rental price. c. low marginal product and a high rental price. d. low marginal product and a low rental price.