For production functions with decreasing returns to scale, a proportional increase in output
A. requires a more-than-proportional growth in all inputs.
B. exhibits diminishing returns.
C. requires proportional growth in all inputs.
D. requires a less-than-proportional growth in all inputs.
Answer: A
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Suppose that the number of jobs in the fishing industry decreases but the number of jobs in the travel industry increases. Initially, ________
A) the economy remains at full employment B) structural unemployment increases C) there is a shortage of workers in both sectors D) cyclical unemployment increases
A firm has successfully adopted a positive technological change when
A) it can produce more output using the same inputs. B) it sees an increase in worker productivity. C) it produces less pollution in its production process. D) it can pay its workers less yet increase its output.
Assume that a monopoly is producing at a profit-maximizing output level. If the firm's total fixed costs decrease, the firm
A) should lower its price. B) should increase its price. C) should continue to produce at the same level. D) increase its output level.
The demand curve for land will shift to the right because of a(n): a. decrease in the demand for agricultural produce. b. increase in the emigration of skilled workers
c. increase in the demand for residential apartments. d. decrease in the disposable income of the residents.