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.
D
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Which of the following best represents an indirect tax?
A) federal income tax B) state income tax C) local property tax D) sales taxes paid on goods and services
Following housing market collapse, U.S. personal saving rates have
A) increased. B) decreased. C) remained the same. D) data not yet available.
Eight years ago you purchased an asset for $100,000 that has yielded a nominal capital gain of $30,000. If you sold the asset today, your inflation-adjusted capital gains would be zero due to inflation over the last eight years
The capital gains tax is 28 percent. If you sold the asset today your tax liability would be A) zero. B) $28,000. C) $8,400. D) cannot be determined without more information.
Under oligopoly, collusive practices to fix prices are more likely to take place if
a. market demand is highly elastic. b. market demand is highly inelastic. c. there are a large number of firms in the industry. d. both market demand is highly inelastic and there are a large number of firms in the industry.