The demand for computers increases. As a result
A) the quantity demanded of workers increases, the wage rate rises, and the supply of labor increases.
B) the demand for workers increases, hiring increases, but wages stay the same since each firm faces a horizontal supply curve of labor.
C) the wage rate increases in the industry and the quantity demanded of workers falls.
D) the wage rate increases in the industry and the quantity supplied of workers increases.
Answer: D
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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.
Which of the following tends to make demand for a good more elastic?
a. A reduction in the number of substitutes for the good. b. Consumers have a long time to adjust to a price change. c. The amount spent on the good is a small proportion of the consumer's budget. d. The good is broadly defined. e. The good is a necessity.
The opportunity cost of holding money is measured by the:
a. interest rate b. liquidity lost by holding money. c. money supply curve. d. inflation rate. e. cost of cashing in financial assets.
Managed funds
a. typically have a higher rate of return and higher costs than index funds. b. typically have a higher rate of return and lower costs than index funds. c. typically have a lower rate of return and higher costs than index funds. d. typically have a lower rate of return and lower costs than index funds.