Decreasing returns to scale production functions must be concave.
Answer the following statement true (T) or false (F)
True
Rationale: Concave functions give rise to convex producer choice sets.
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If the reciprocal of the slope of a demand curve is calculated, this value is equal to the price elasticity of demand for that good.
Answer the following statement true (T) or false (F)
All welfare programs are means-tested income transfers
Indicate whether the statement is true or false
A country is said to have a comparative advantage in the production of a good when it:
a. has the lower opportunity cost of producing the good. b. can produce the good using fewer resources than another country. c. requires fewer labor hours to produce the good. d. all of these.
Focal point equilibria are consistent with:
A. a nonmarket economy. B. the "you get what you pay for" rule. C. rational choice theory. D. the "follow the leader" rule.