Which of the following statements best describes a production function?
A) the maximum profit generated from given levels of inputs
B) the maximum level of output generated from given levels of inputs
C) all levels of output that can be generated from given levels of inputs
D) all levels of inputs that could produce a given level of output
B
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If everyone has identical preferences over public goods, Lindahl prices for providing the efficient level of the public good will be the same for everyone.
Answer the following statement true (T) or false (F)
Nike faces a more__________ demand for its products than a shoe polish producer
a. inelastic b. elastic c. perfectly elastic d. perfectly inelastic
Assume the Fed decreases the money supply and the demand for money curve is fixed. In response, people will:
a. sell bonds, thus driving up the interest rate. b. buy bonds, thus driving down the interest rate. c. buy bonds, thus driving up the interest rate. d. sell bonds, thus driving down the interest rate.
Refer to the data in Figure 22.1. The shape of the total revenue curve indicates that the price of this good
A. Falls at first as output rises, but then rises as output rises. B. Falls as output rises. C. Rises as output rises. D. Stays the same as output rises.