In the open-economy macroeconomic model, the supply of loanable funds comes from
a. the sum of domestic investment and net capital outflow.
b. net capital outflow alone.
c. domestic investment alone.
d. None of the above is correct.
d
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Skateboards are produced according to the production function, q = 10K0.25L0.5 - L. At what quantity of labor does total product begin to decline given that capital is fixed at 16 units in the short-run?
A) L = 100. B) L = 10. C) L = 5. D) Not enough information is given.
A monopolist faces the inverse demand curve P = 60 - Q. It has variable costs of Q2 so that its marginal costs are 2Q, and it has fixed costs of 30. The monopoly's profit maximizing output is
A) 5. B) 10. C) 15. D) 20.
The most cost-efficient input is the one that can produce the most revenue per unit of input.
Answer the following statement true (T) or false (F)
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country B could potentially make would be:
A. (300 iPods, 450 tablets). B. (400 iPods, 1 tablet). C. (200 iPods, 1,500 tablets). D. (400 iPods, 2,000 tablets).