Given a Cobb-Douglas production function estimate of Q = 1.19L.72K.18 for a given industry, this industry would have:
a. increasing returns to scale
b. constant returns to scale
c. decreasing returns to scale
d. negative returns to scale
e. none of the above
c
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How does the marginal benefit from a good change as the quantity produced of that good increases?
What will be an ideal response?
Negative incentives: a. increase benefits or reduce costs
b. increase behaviors. c. decrease benefits or increase costs. d. include both cash subsidies and taxes.
Which of the following statements is NOT true about the price system?
A) The price system allows resources to flow from low-valued uses to high-valued uses. B) Firms have total control over what consumers can buy. C) Individuals have freedom to purchase what they want. D) The price system allows for economic efficiency.
The trend in current tariff laws is to
A. keep tariffs the same. B. raise tariffs on foreign goods. C. abolish tariffs all together. D. lower tariffs on foreign goods.