The given data suggest that the amount of money demanded for transactions:
Answer the question on the basis of the following table in which columns (1) and (2) indicate the transactions demand (D t ) for money and columns (1) and (3) show the asset demand (D a ) for money:
A. varies directly with the interest rate.
B. varies inversely with the interest rate.
C. varies inversely with nominal GDP.
D. is independent of the interest rate.
D. is independent of the interest rate.
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Suppose the production of DVD players can be represented by the following production function: q = L0.4K0.4. Which of the following statements is (are) TRUE?
A) The production function has decreasing returns to scale. B) The marginal productivity of labor falls as labor increases in the short run. C) Capital and labor can be substituted for one another. D) All of the above.
If producing more output increases average cost then
A) there are diseconomies of scale. B) there are economies of scope. C) there are diseconomies of scope. D) there are no economies of scale.
For a normal distribution, the skewness and kurtosis measures are as follows:
A) 1.96 and 4 B) 0 and 0 C) 0 and 3 D) 1 and 2
An increase in labor force participation will increase output and living standards at the cost of
a. higher taxes b. higher interest rates c. longer work weeks d. foregone leisure time e. higher exports