Suppose an economy has the following production function: Y = A × K1/4 × H3/4. Which of the following is true of this economy?
A) Production in this economy exhibits increasing returns to scale.
B) Production in this economy exhibits decreasing returns to scale
C) Production in this economy exhibits constant returns to scale.
D) Production in this economy decreases when the price level increase.
C
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Collusion is a key type of cooperation for
A. maximizing revenue. B. monopolistic competition. C. becoming a monopoly. D. cartels.
What is the most common reason people demand money?
A. Each bill and coin is a reflection of important people and events in a nation's history. B. Since very few of us engage in a flow of transactions, money is our financial safety net. C. People desire to use money as a medium of exchange when they buy goods and services. D. They demand money to ensure that the nation's government will not spend too much.
Currency debasement occurs when
A. the government requires that a certain form of money must be accepted in settlement of debts. B. the value of money falls as a result of a rapid increase in its supply. C. items are used as money that also have intrinsic value in some other use. D. items are designated as money that are intrinsically worthless.
If the demand for hand-sewn leather shoes increases, it is likely the demand for leather will:
A. decrease slightly. B. also increase. C. drop significantly and producers will use another material. D. stay the same.