The marginal product of capital for the Cobb-Douglas production function is given by:
A. aKa-1 Lb.
B. aKa-1 Lb-1.
C. bKa Lb.
D. bKa Lb-1.
Answer: A
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Social Security expenditures in the U.S. for 2006 made up approximately what percent of GDP?
a. 5 percent b. 12 percent c. 50 percent d. 75 percent e. 1 percent
You have noticed that your next-door neighbor, Mary, always works in the garden, and her husband, Joe, always walks the dog. You conclude that if Joe and Mary are efficient, then it must be the case that:
A. Mary's opportunity cost of walking the dog is lower than Joe's. B. Mary has an absolute advantage in gardening. C. Joe has a comparative advantage in walking the dog. D. Joe experiences increasing opportunity costs when he gardens, but not when he walks the dog.
You paid $35 for a ticket (which is non-refundable) to see SPAM, a local rock band, in concert on Saturday. Assume that $35 is the most you would have been willing to pay for a ticket. Your boss called, and she is looking for someone to cover a shift on Saturday at the same time as the concert. You would have to work 4 hours and she would pay you $11/hr. The psychic cost to you of working is $2/hr. Your economic surplus from going to work instead of seeing SPAM on Saturday is:
A. $0 B. $36 C. $35 D. $1
A drought in the Midwest will raise the price of wheat because of a
A) leftward shift in the supply curve. B) rightward shift in the supply curve. C) leftward shift in the demand curve. D) rightward shift in the demand curve.