Let the production function be q=ALaKb. The function exhibits decreasing returns to scale if
A) a + b = 1.
B) a+ b > 1.
C) a + b < 1.
D) Cannot be determined with the information given.
C
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In a closed economy
A) I = Y - C - G. B) I = Y + C - G. C) I = Y + C + G. D) I = Y - C + G.
In the national income accounting system, saving refers to the accumulation of newly produced physical entities, such as factories, machinery, houses, and goods inventories
a. True b. False Indicate whether the statement is true or false
Use the following diagrams to answer the next question.
Assume the economy is on aggregate demand AD4. The Fed should ________.
A. move from MS1 to MS2 to lower interest rate and lower investment. B. move from MS1 to MS2 to lower interest rate and increase investment. C. move from MS1 to MS3 to raise interest rate and lower investment. D. move from MS1 to MS3 to raise interest rate and raise investment.
From the information in the above table, what is the marginal utility of the third quart of ice cream?
A) 80 B) 70 C) 60 D) 230