In conceptual production functions, technological change is
A. not considered and is therefore assumed to be constant in all deliberations.
B. treated like an addition to the capital stock.
C. a factor that eliminates diminishing returns to a production function.
D. treated as a movement upward along a given production function.
Answer: B
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A study of mass transit systems in American cities revealed that long-run revenues generally decline after substantial fare increases. This suggests that:
A. mass transit service deteriorates in the long run as price rises. B. the demand for mass transit is price-elastic in the long run. C. there are few good substitutes for such systems in urban areas. D. the demand for mass transit is price-inelastic in the long run.
Which of the following statements is? true?
A. The longer any price change? persists, the greater the elasticity of demand. B. The closer the substitutes for a particular commodity and the more substitutes there? are, the more inelastic will be its price elasticity of demand. C. The smaller the share of a? person's total budget that is spent on a? commodity, the greater that? person's price elasticity of demand is for that commodity. D. The demand for necessities is likely to be? elastic, while the demand for luxuries is likely to be inelastic.
Because commodity money is not uniform in quality, there is a tendency
A) for higher quality commodity money to drive lower quality commodity money out of circulation. B) for lower quality commodity money to drive higher quality commodity money out of circulation. C) for stable commodity money to drive unstable commodity money out of circulation D) for unstable commodity money to drive stable commodity money out of circulation.
By implementing user fees, the government tries to shift
A. External costs to the producer. B. External costs to users. C. Private costs to society. D. Social costs to the producer.