Suppose the production of DVD players can be represented by the following production function: q = L0.4K0.4. Which of the following statements is TRUE?
A) The production function has decreasing returns to scale.
B) The production function has increasing returns to scale.
C) The production function has constant returns to scale.
D) Returns to scale vary with the level of output.
A
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What best describes the role of the United States in World War I?
a. The U.S. entered World War I as soon as it started. b. The U.S. was a neutral moderator throughout the war. c. The U.S. entered the war on the side of Russia and opposed Austria Hungary. d. U.S. business suffered severe financial losses during the war.
If MR a. increase production
b. decrease production
c. keep the prices constant
d. keep the production level constant
The shape of the long-run Phillips curve suggests that over a long time horizon there is a magnified trade-off between the unemployment rate and inflation
a. True b. False Indicate whether the statement is true or false
If the MPC = 0.75, then the government purchases multiplier is about
a. 1.33. b. 7. c. 4. d. 3.