Which of the following models is used quite often to capture decreasing or increasing marginal effects of a variable?

A. Models with logarithmic functions
B. Models with quadratic functions
C. Models with variables in level
D. Models with interaction terms


Answer: B

Economics

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The slopes of the production possibilities curves for two nations reflect the

A. relative prices of the resources in the two nations. B. average income levels in the two nations. C. opportunity costs of production in the two nations. D. amounts of imports and exports of the two nations.

Economics

In the figure above, when the price of a CD is $8.00, total producer surplus from all the CDs will be

A) zero. B) greater than at $10.00 per CD. C) $20 million. D) $10 million.

Economics

Between 1929 and 2005 in the United States, the Lorenz curve became:

a. less bowed outward. b. more bowed outward. c. a straight line. d. a downward-sloping curve.

Economics

The difference between GNP and NNP is equal to:

a. the statistical discrepancy in calculation. b. the capital consumption allowance. c. the transfer payments. d. the value of net exports. e. the change in inventory.

Economics