If production function q1 = f(L, K), which of the following production functions illustrates neutral technical progress?
A) q2 = f(1.25L, 1.25K)
B) q2 = f(1.25L, K)
C) q2 = f(L, 1.25K)
D) q2 = 1.25 * f(L, K)
D
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If a rent ceiling is imposed that is less than the equilibrium rent, which of the following outcomes is most likely to occur?
A) reduced search activity B) black market activity C) a building boom D) a housing surplus E) None of the above answers is correct because to have an impact, the rent ceiling must be above the equilibrium rent.
The S-curve is used to illustrate
a. the typical path taken by the current account over time. b. economic fluctuations in the economy. c. the typical growth path of a developing economy. d. the existence of multiple equilibria.
On a graph we draw a consumer's budget constraint, measuring the number of apples on the horizontal axis and the number of light bulbs on the vertical axis. If the slope of the budget constraint is -2, then
a. an apple costs twice as much as a light bulb. b. the opportunity cost of a light bulb is 2 apples. c. the opportunity cost of an apple is one-half of a light bulb. d. All of the above are correct.
Which statement is true?
A. There are over 50 million Americans living below the poverty line. B. The poverty line is raised each year. C. Nearly all the nation's poor people live in the South. D. Poverty is a greater problem today than at any time since the end of World War II.