Capital saving nonneutral technical progress allows a firm to
A) produce more output with the same inputs.
B) use less capital and the same amount of other inputs to produce the same level of output.
C) use more capital to produce the same level of output.
D) use less capital and more of other inputs to produce the same level of output.
B
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Suppose the demand curve for hybrid cars shifts to the right. This will cause a relatively small increase in the price of hybrid cars if
A) both demand and supply are inelastic. B) demand is elastic and supply is inelastic. C) demand is inelastic and supply is elastic. D) both demand and supply are elastic.
If interest rates rise by 5 percentage points, say from 10 to 15%, bank profits (measured using gap analysis) will
A) decline by $0.5 million. B) decline by $1.5 million. C) decline by $2.5 million. D) increase by $2.0 million.
Which of the following would be likely to raise your opportunity cost of attending a big basketball game this Sunday night? a. A friend calls you up and offers you free tickets to a concert by one of your favorite bands on Sunday night. b. Your employer offered you double your usual wage to work this Sunday night
c. Late Friday afternoon, your physics professor makes a surprise announcement that there will be a major exam on Monday morning. d. All of the above would likely raise the opportunity cost of attending the game.
If price rises, what happens to the quantity demanded for a product?
a. It increases. b. It decreases. c. It does not change. d. Uncertain--economic theory has no answer to this question.