In the aggregate production function, Y represents real GDP, K represents the capital stock, L represents the quantity of labor, and A represents an index of efficiency. Which of the following equations represents the aggregate production function?
A) Y = (K × L) / A
B) Y × A = (K × L)
C) Y = AF(K, L)
D) Y = (K × L) = A /FY
C
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If country A is importing good x from country B where x is produced along a perfectly inelastic supply curve, then country B will suffer the entire deadweight loss from any tariff imposed on imports to country A.
Answer the following statement true (T) or false (F)
Demand and supply analysis is particularly important if
a. the success of your firm is closely linked to the profitability of your primary industry b. the success of your firm is independent of the profitability of your primary industry c. the success of your firm is unlikely d. demand and supply analysis is unimportant
A merger between two firms that have a supplier-purchaser relationship is
a. horizontal b. vertical c. conglomerate d. illegal e. a cartel
Which of the following services is performed by the regional Federal Reserve banks?
A. Providing currency to private banks. B. Providing loans to individuals. C. Holding deposits for individuals. D. Check cashing for large nonbank corporations.