Which of the following production functions exhibits constant returns to scale?
A) q = KL
B) q = KL0.5
C) q = K + L
D) q = log(KL)
C
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When a price ceiling is set below the equilibrium price, quantity demanded will exceed quantity supplied resulting in
a. excess demand or shortages. b. excess supply or surpluses. c. equilibrium prices. d. price controls.
In a world where capital moves rapidly across national boundaries, if a larger budget deficit leads to higher real interest rates,
a. there will be an inflow of foreign capital, which will cause the dollar to appreciate and net exports to decline. b. there will be an outflow of foreign capital, which will cause the dollar to depreciate and net exports to increase. c. there will be an inflow of foreign capital, which will cause the dollar to depreciate and net exports to increase. d. there will be an outflow of foreign capital, which will cause the dollar to appreciate and net exports to decline.
An implication of the median voter theorem is that Republicans and Democrats will try to align their views with those of the median voter
a. True b. False Indicate whether the statement is true or false
The oligopoly model is the only model that explicitly considers how the pricing and output decisions of one firm affect other firms.
Answer the following statement true (T) or false (F)