We can express the per-worker production function as a function of only per-worker capital thanks to
A) the decreasing marginal return of capital.
B) the decreasing marginal return of labor.
C) the constant returns to scale.
D) the impatience of households.
C
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If the balance on the current account in the United States is $750 billion, which of the following is most likely to be true?
A) The balance on the financial account is negative. B) The trade balance is negative. C) The balance on the capital account is positive. D) Net foreign investment is negative.
For a perfectly competitive firm, profit maximization occurs when
A) marginal revenue equals average total cost. B) marginal revenue equals marginal cost. C) marginal cost is equal to average total cost. D) average total cost is at its minimum.
Suppose two goods (X and Y ) are being produced efficiently and that the production of X is always more labor intensive than the production of Y. Production depends only on two factors (capital and labor); these may be smoothly substituted for each other. The total quantities of these inputs are fixed. An increase in the production of X and a decrease in the production of Y will
a. increase the capital-labor ratio in each firm. b. decrease the capital-labor ratio in each firm. c. leave the capital-labor ratio for each firm unchanged. d. increase the capital-labor ratio in Y production and decrease the capital-labor ratio in X production.
Corporate management can defend itself against the threat of a hostile takeover in all of the following ways except
a. use of shark repellent activities b. buying its own corporate stock c. acquiring considerably more debt d. finding a white knight e. keeping a large cash reserve for an emergency