Suppose that capital and labor must be kept in a fixed proportion to produce a particular good. For example, digging a trench requires one worker who has one shovel. What does this imply about returns to scale?
A) There are constant returns to scale.
B) There are increasing returns to scale.
C) There are decreasing returns to scale.
D) Nothing.
A
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The current account balance equals
A) net exports + net transfers + net interest. B) net exports + net transfers. C) net exports - net transfers + net interest. D) net exports - net transfers - net interest. E) net exports + net transfers - net interest.
The quantity supplied of a good is
A) the same thing as the quantity demanded at each price. B) the amount that the producers are planning to sell at a particular price during a given time period. C) equal to the difference between the quantity available and the quantity desired by all consumers and producers. D) the amount the firm would sell if it faced no resource constraints.
A model is a simplified representation of an object or situation that includes enough of the key features to be useful
a. True b. False Indicate whether the statement is true or false
When offered a bet at unfair odds, a risk-neutral individual will
a. not bet. b. bet everything on the outcome favored by the unfair odds. c. bet everything on the outcome not favored by the unfair odds. d. be indifferent about the amount that he bets.