In the production function, Y=AF(K,N) variable A is
A. total factor productivity
B. marginal output of labor
C. the x-factor
D. a measure of unemployment
Answer: A. total factor productivity
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Suppose Ramen noodles, an inexpensive but a quite tasty dish, are an inferior good. Why do grocery stores in college towns, that is, towns with a large fraction of college students, stock a lot of Ramen noodles?
What will be an ideal response?
Assume a firm is producing 1000 units of a good by using two inputs, capital and labor, whose per unit prices are $50 and $20
Assume also that the marginal physical product of the last unit of capital is 25 and the marginal physical product of the last unit of labor is 15. In order to minimize its costs of production, the firm should adjust its combination of inputs by employing more labor and less capital. Indicate whether the statement is true or false
Employing Figure 4-1 above, if Y increases by 3000 and the interest rate is fixed at 5% then the sensitivity of real money balances to changes in real income is
A) 0.67. B) 0.33. C) -0.67. D) -0.33.
Suppliers with a high supply elasticity will bear a ______ tax incidence, while suppliers with a low supply elasticity will bear a ______ tax incidence
A) lower; higher B) higher; lower C) lower or no; higher or full D) A and C