Which of the following is the result of allocative and productive efficiency being met at the same time in a long-run equilibrium?
a. Perfect competition
b. Market entry
c. Maximum output
d. Monopolistic competition
a. Perfect competition
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If the expected path of 1-year interest rates over the next five years is 2 percent, 4 percent, 1 percent, 4 percent, and 3 percent, the expectations theory predicts that the bond with the lowest interest rate today is the one with a maturity of
A) one year. B) two years. C) three years. D) four years.
Which of the following could cause the production function to shift upward?
a. A decrease in the capital stock b. An increase in the capital stock c. An increase in population d. A decrease in population e. An increase in transfer payments
Growth accounting is seen a useful way to estimate this inputs contribution to growth:
A. labor. B. physical capital. C. land. D. technology.
Which of the following statements is correct?
A. If the profit-maximizing rule is fulfilled, it necessarily follows that the cost-minimization rule is being fulfilled. B. The profit-maximizing and the cost-minimizing rules are such that the fulfilling of one has no bearing on the fulfilling of the other. C. If the profit-maximizing rule is fulfilled, the cost-minimization rule may or may not be fulfilled. D. If the cost-minimization rule is fulfilled, it necessarily follows that the profit-maximizing rule is being fulfilled.