Suppose the production function for T-shirts can be represented as q = L0.25K0.75. When K = 1 and q = 2, what is the slope of the isoquant? If there is insufficient information to answer the question, describe what information is needed
What will be an ideal response?
Since the slope of the isoquant is -K/3L, one needs to know the level of L. Since K = 1 and q = 2, L must equal 16. Thus, the slope of the isoquant at this point is -(1/48).
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Which of the following groups has had declining labor force participation over the last 30 years?
a. Women b. Men c. Teenagers d. Americans
According to economists, how does an increase in the inflation rate affect the consumption function?
a. It shifts the function upward. b. It shifts the function downward. c. It causes movement upward along the function. d. It causes movement downward along the function. e. It has no predictable effect on the function.
The majority of Americans, when asked how many states they could name, think they could name all fifty. However, when they are asked to do so, very few are able to come up with all fifty. This is an example of which systematic mistake that people make?
Between 1968 and 2008 the percentage share of income that went to the top quintile
A. fell substantially. B. fell somewhat. C. stayed about the same. D. rose substantially.