In the Cobb-Douglas production function Y = AK3/4L1/4,
A) capital is a more expensive input than labor.
B) capital is more plentiful than labor.
C) diminishing returns to capital are three times greater than are diminishing returns to labor.
D) capital has a larger share in national income than does labor.
D
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The more certain private property rights are
A) the less people need to invest in education or human capital development. B) the more an economy must grow to maintain a certain living standard. C) the less entrepreneurship there will be. D) the more capital accumulation there will be.
A firm's labor demand curve is also its marginal revenue product curve. For both the perfectly competitive firm and the output price maker, the labor demand curve slopes downwards
However, there is a difference in the reasons why the labor demand curve slopes downwards. What is this difference?
To compute a monthly consumer price index, we need
A) data about consumption habits in every month. B) data about item prices every month. C) fixed exchange rates. D) the GDP or GNP deflator.
Two variables are said to be ________ if they move together
A) procyclical B) spurious C) correlated D) co-dependent