If Q = K1/3L2 the MPK is
a. constant
b. diminishing
c. increasing
b
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In the depth of the Great Depression, the unemployment rate in the United States was about:
A. 15 percent. B. 33 percent. C. 25 percent. D. 40 percent.
Which of the following four-firm concentration ratios would be the best indication of a perfectly competitive industry?
A) 2 percent B) 31 percent C) 78 percent D) 100 percent E) 50 percent
Which of the following is the purpose of a minimum wage?
a. To reduce the wage rates of high-income workers b. To keep a track of the changes in the wage rate in an unskilled labor market c. To deal with the problem of unemployment in the market d. To help increase the profits earned by the producers e. To raise the wage rate for the lowest income workers
Situation 32-1 In the early 1980s, the U.S. automobile industry managed to influence the government to negotiate a voluntary export restraint agreement with Japan that was in effect from 1981 until 1985. The predictable result was an average increase in the price of Japanese cars by about $1,000 and of U.S. cars by about $370. Also, as a result of the import quotas, 26,000 new jobs were "created"
in the U.S. automobile industry. Refer to Situation 32-l. At the time the total yearly salary (including all the benefits) of the average auto worker was no more than $50,000 per year, and the cost per job saved was estimated at $160,000 per worker per year. We can conclude that A) import quotas are a cost-efficient way of saving jobs. B) the U.S. auto industry, through its lobbying efforts, managed to promote the general public interest. C) the net social benefits of import quotas were positive. D) all of the above E) none of the above