The aggregate production function shows the quantity and quality of resources used in production given the efficiency with which resources are utilized and the prevailing technology
Indicate whether the statement is true or false
TRUE
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Describe the process that would occur in the long run in a competitive industry if there were economic profits. Illustrate this with a diagram.
What will be an ideal response?
A price ceiling that is set above the equilibrium price will result in:
A. a loss in total economic surplus. B. a market price that is above the equilibrium price. C. no change in total economic surplus. D. an increase in consumer surplus.
We could use the information in the table to draw a production possibilities frontier for Maya and a second production possibilities frontier for Miguel. If we were to do this, measuring mixers along the horizontal axis, then
A. the slope of Maya's production possibilities frontier would be -0.6 and the slope of Miguel's production possibilities frontier would be -0.6. B. the slope of Maya's production possibilities frontier would be -0.5 and the slope of Miguel's production possibilities frontier would be -0.5. C. the slope of Maya's production possibilities frontier would be -1.67 and the slope of Miguel's production possibilities frontier would be -1.67. D. the slope of Maya's production possibilities frontier would be -2 and the slope of Miguel's production possibilities frontier would be -2
A decrease in both equilibrium price and quantity could be produced by a(n)
a. decrease in supply, with demand constant b. increase in supply, with demand constant c. decrease in demand, with supply constant d. increase in demand, with supply constant e. improvement in technology