Given the linear production function Q = 10K + 5L, if Q = 10,000 and K = 500, how much labor is utilized?
A. 600 units
B. 500 units
C. 1,000 units
D. 800 units
Answer: C
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Capital, K, includes
A) money. B) machinery. C) business loans. D) know-how.
The financial crisis that began in 2007:
a. was predicted in detail by Alan Greenspan and Ben Bernanke. b. was centered on subprime lending and the complex financial instruments based on subprime loans. c. was caused by a downturn in the stock market. d. None of the above are correct.
The labor supply curve reflects how
a. workers' decisions about the labor-leisure tradeoff respond to a change in the wage. b. workers' decisions about the opportunity cost of labor respond to a change in the quantity of labor supplied. c. firms' decisions about the labor-leisure tradeoff respond to the quantity of labor demanded. d. firms' decisions about how the quantity of labor they hire respond to changes in their opportunities to earn profits.
Marginal cost is a good measure of
A. what society gains by using resources to produce more of a good or service. B. what society gives up by using resources to produce more of a good or service. C. the social value of a marginal unit of a good. D. the least costly way to produce all units of a good.