Suppose the production function for a certain device is q = L + K. If neutral technical change has occurred, which of the following could be the new production function?
A) q = L + 5K
B) q = 5 ? (L + K)
C) q = 5L + K
D) All of the above are possible.
B
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Refer to Table 10-1. Using the table above, what is the approximate growth rate of real GDP from 2015 to 2016?
A) 1% B) 2% C) 3% D) 4%
In autarky, when a community maximizes its standard of living, its production point is
A) below the production possibility frontier. B) on the production possibility frontier. C) above the production possibility frontier. D) Can't tell without more information.
Which of the following is not an exogenous factor of production in the aggregate production function?
a. Technology b. The real wage c. Capital d. Labor e. These are all factors of production.
Recall the Application about the demand and price for margarine to answer the following question(s).Recall the Application. The reason that the change in demand for margarine did not change the equilibrium price in the long run is because the margarine industry is an example of ________ industry.
A. a decreasing-cost B. an increasing-cost C. a constant-cost D. a negative-cost