What are the main functions of markets?
What will be an ideal response?
The main function of a market is to enable buyers and sellers to get information and to do business with each other. Markets have evolved because they facilitate trade, that is, they facilitate the ability of buyers and sellers to trade with each other.
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Suppose a firm uses land, labor, and capital for its production process. If it is renting the equilibrium quantity of all three factors of production, then which of the following conditions will hold?
A) Marginal product from the last dollar spent on land = Marginal product from last dollar spent on labor > Marginal product from the last dollar spent on capital B) Marginal product from the last dollar spent on land > Marginal product from last dollar spent on labor > Marginal product from the last dollar spent on capital C) Marginal product from the last dollar spent on land > Marginal product from last dollar spent on labor = Marginal product from the last dollar spent on capital D) Marginal product from the last dollar spent on land = Marginal product from last dollar spent on labor = Marginal product from the last dollar spent on capital
At 2015 prices, the value of production in 2016 was 6 percentage points higher than in 2015. At 2016 prices, the value of production in 2016 was 4 percentage points higher than in 2015
Using the chain-weighted output index, real GDP is ________ in 2016 than in 2015. A) 10 percent greater B) 5 percent greater C) 7.5 percent greater D) 4 percent smaller
An increase in ________ shifts the production function ________, and makes it possible to produce a higher level of GDP with ________ capital per hour worked
A) technology; down; the same amount of B) consumption; up; a lesser amount C) technology; up; the same amount of D) labor productivity; down; the same amount of
The interest rate is the ________ cost, hence the ________ cost, of investing in capital
a. actual cost; opportunity cost b. opportunity cost; actual cost c. opportunity cost; marginal cost d. marginal cost; total cost