In the Primary Metals industry, it is estimated that the elasticity of output with respect to labor is 0.51 and the elasticity of output with respect to capital is 0.73. These two measures indicate that the primary metals industry is characterized by
A) decreasing returns to scale.
B) constant returns to scale.
C) increasing returns to scale.
D) no returns to scale.
C
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The study of economic mobility discussed in the text pinpoints five factors that are correlated with economic mobility. What are those five factors and how do they affect economic mobility?
What will be an ideal response?
The monopolist faces a:
A. perfectly elastic demand curve. B. downward sloping demand curve. C. perfectly inelastic demand curve. D. perfectly elastic supply curve.
The simple money multiplier: a. equals the reciprocal of the required reserve ratio
b. assumes banks hold excess reserves. c. becomes larger as the required reserve ratio increases. d. equals required reserves plus excess reserves. e. equals total reserves minus required reserves.
NAFTA is believed to have __________ manufacturing productivity, especially in the maquiladora plants.
a. raised b. lowered c. had no effect on d. greatly hindered