In the mathematical formulation of the short-run production function:
A) the quantity of output is usually assumed to be fixed.
B) the quantity of capital employed is usually assumed to be fixed.
C) the quantity of both labor and capital employed are usually assumed to be fixed.
D) the quantity of both labor and capital must be allowed to vary so that output can vary in the short run.
B
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Government is a social institution
A) in which people do not engage in competition. B) in which the public interest, rather than private interests, guide individual behavior. C) whose behavior is determined by individuals' perceptions of marginal costs and marginal benefits. D) whose detailed actions are governed by the will of the majority.
To mobilize resources in WWII, the United States relied on:
a. borrowing. b. taxes. c. creating money. d. All of the above are correct.
The fact that a gallon of gasoline commands a higher market price than a gallon of water indicates that:
a. gasoline is an economic good but water is not. b. the marginal utility of gasoline is greater than the marginal utility of a gallon of water. c. the average utility of a gallon of gasoline is greater than the average utility of a gallon of water. d. the total utility of gasoline exceeds the total utility of water.
Which of the following would be consistent with a decline in labor productivity?
a. Faster growth in capital formation b. Enhanced worker quality c. Decreased manufacturing production d. High federal government budget surpluses