To manufacture 1,000 pairs of shoes in a week, a firm can use 1,500 workers and 50 machines or 100 machines and 2,000 workers. Which method is more technically efficient?
A. 2,000 workers and 100 machines
B. 1,500 workers and 50 machines
C. Both are equally efficient.
D. Neither could be considered efficient.
Answer: B
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Indicate whether the statement is true or false
In the above figure, the initial supply of loanable funds curve is SLF0 and the demand for loanable funds investment curve is DLF0. An increase in the real interest rate to 7 percent could be caused by
A) an increase in investment demand. B) a decrease in the expected profit. C) an increase in people's disposable incomes. D) an expansion that increased both saving and investment by the same amount.
The branch of macroeconomics concerned with changes in the natural real GDP is the theory of
A) business cycles. B) economic growth. C) GDP gaps. D) unemployment.
Changes in the rate charged by electric power companies are subject to government control because
A. the electric power companies are government enterprises. B. consumer ignorance makes it impossible to know what rates are fair. C. the electric power companies are firms that exhibit economies of scale. D. cutthroat competition would probably occur if the government did not intervene.