Profit functions are homogeneous of degree:

a. zero in input and output prices.
b. zero in input prices.
c. one in input and output prices.
d. one in input prices.


c

Economics

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When the ratio of domestic prices to foreign prices rises:

A) the real exchange rate depreciates. B) the real exchange rate appreciates only when the nominal exchange rate appreciates. C) the real exchange rate appreciates only when the nominal exchange rate depreciates. D) the real exchange rate appreciates even when the nominal exchange rate is constant.

Economics

In the 1980s, some states in the United States had significantly more bank failures than other states. What industries did the former states depend on heavily?

a. Oil and agriculture b. Tourism c. Defense and aeronautics d. Construction and textiles e. The computer industry

Economics

A shortage is the same as an excess demand

a. True b. False Indicate whether the statement is true or false

Economics

Measured as a share of national income, government expenditures on income transfers during the last 70 years have

What will be an ideal response?

Economics