In the following production function, Y = f(K, NA), a 20% increase in A will cause which of the following variables to increase by 20%?
A) labor
B) effective labor
C) output
D) output per worker
E) none of the above
B
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The textbook rejects the cost-plus-markup theory of price setting because
A) business firms do not describe their price-setting procedures as cost-plus procedures. B) competitors and monopolists set prices in different ways. C) it cannot explain the prices we actually observe. D) it ignores the role of government in regulating prices. E) no single theory can explain all price-setting.
In the figure above, the lowest 20 percent of all households receive ________ percent of all income, the next lowest 20 percent receive ________ percent of all income and the richest 20 percent receive ________ percent of all income
A) 20; 20; 20 B) 20; 40; 100 C) 10; 20; 40 D) 10; 10; 40
A law that prohibits certain kinds of market behavior such as monopoly and monopolistic practices is called ________
A) a consumer surplus law B) a trust law C) an antitrust law D) an anti-monopoly law
The demand for a specific brand of corn flakes cereal is likely to be:
A. very price elastic, because there are many close substitutes available. B. less price elastic, because there are many close substitutes available. C. very price elastic, because that specific brand is a unique product. D. less price elastic, because the specific brand is a unique product.