Suppose the production of VCRs can be represented by the following production function: q = L0.4 K0.4. Which of the following statements is TRUE?
A) The production function has decreasing returns to scale.
B) The production function has increasing returns to scale.
C) The production function has constant returns to scale.
D) Returns to scale vary with the level of output.
A
You might also like to view...
Jane lives and works in New York. Every month she sends $500 to her mother in London. This is an example of a(n) ________
A) import by the U.S. B) transfer payment to the U.K. C) export by the U.S. D) factor payment to the U.K.
Assume that a bank holds legal reserves of $800, the required reserves are $400 and total deposit is $4,000 . If the government purchases bonds worth $200, excess reserves will increase by _____
a. $420 b. $180 c. $100 d. $80 e. $40
Scarcity:
a. is a problem only in the poorer countries of the world. b. can be solved by rapid advances in technology. c. is a problem that exists in every economy. d. is not a problem for the very rich.
Which type of unemployment is most closely connected with the saying "you can't teach an old dog new tricks"?
a. Cyclical. b. Frictional. c. Structural. d. Voluntary. e. Seasonal.