When demand increases in a perfectly competitive market, in the short run ________, and in the long run ________.
A. quantity supplied increases; prices increase
B. quantity supplied decreases; prices decrease
C. prices increase; supply increases
D. prices increase; prices stay permanently higher
Answer: C
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Given the aggregate production function Y = A , the Solow residual equals ________ when Y is 60, K = 5 and L = 5
A) 2.4 B) 35 C) 25 D) 12
The impact of higher taxes would be examined by
A) a microeconomist. B) a macroeconomist. C) both a macroeconomist and a microeconomist. D) neither a macroeconomist nor a microeconomist.
Which term describes the process of examining the physical outputs to the physical inputs of a given production process?
a. production function b. aggregate production function c. human capital d. physical capital
In the figure above, what is the point price elasticity of demand when price is $60?
A. -0.50 B. -2.00 C. -1.00 D. -0.75 E. -1.60