Suppose the production function is given by Q = 4K + 3L. What is the average product of labor when 10 units of capital and 5 units of labor are employed?
A. 4
B. 11
C. 3
D. 45
Answer: B
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What best explains why real GDP per person is always driven to the subsistence level in the classical model?
A) Population growth occurs, increasing the supply of labor. B) Population growth occurs, shifting the labor supply curve leftward. C) Growth is not possible so the demand for labor never changes. D) Investment in capital decreases labor demand, decreasing the demand for labor.
If there is a direct relationship between two variables
A) the graph of the relationship will be upward-sloping. B) the graph of the relationship will be downward-sloping. C) the slope of the line (or the slope of a tangent line to the curve) will be negative. D) Both answers A and C are correct.
Refer to Figure 19-5. Suppose the Chinese government decides to abandon pegging the yuan to the dollar at a rate which undervalues the yuan
Using the figure above, the equilibrium exchange rate would be ________ and Chinese exports to the United States would ________ in price. A) $0.11/yuan; increase B) $0.11/yuan; decrease C) $0.14/yuan; increase D) $0.13/yuan; increase E) $0.13/yuan; decrease
Efforts by firms to secure patents increase the amount of competition in the affected markets
Indicate whether the statement is true or false