With a cubic production function of the form Q = aK3L3 + bK2L2, in order for the average and marginal product functions to have their usual theoretical properties, it must be the case that
A. a > 0, b > 0
B. a < 0, b > 0
C. a < 0, b < 0
D. a > 0, b < 0
Answer: B
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The Danish currency, the krone, is pegged to the euro at a rate of 7.46 kroner (kroner is the plural of krone) to the euro. At the pegged exchange rate, how many euros would be exchanged for one krone?
A) 0.07 B) 0.13 C) 1.76 D) 7.46
Social Security was established
a. in the 1930s to provide retirement income to those with a work history b. in the 1930s to provide jobs for the unemployed c. in the 1930s to provide health insurance d. in the 1960s to provide retirement income to those with a work history e. in the 1960s to provide health insurance
Civil law provides business with more certainty because it is based on precedent
a. True b. False
When tradable allowances are used to correct negative externalities in a market, the outcome:
A. maximizes surplus. B. limits the quantity bought and sold to the efficient level. C. is efficient. D. All of these statements are true.