Which of the following can expand the production possibilities frontier?
a. Improved patent laws
b. Legal reforms that increase transaction costs
c. Reductions in the length of patent protection
d. Stringent tax laws for R&D companies
e. The advent of a labor deepening technology
a
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Consider the following:
(i) Suppose the firm is in the short run, and consider the first stage of production. What happens to the average product of labor when the firm adds an additional worker? What causes this change in labor productivity? (ii) Repeat part i for the second stage of production.
What is meant by terms of trade? How is it determined?
What will be an ideal response?
Which of the following asserts that expanding all inputs proportionately does not change the average cost of production?
a. Constant returns to scale b. Diseconomies of scale c. Long-run implicit costs d. Economies of scale
In which case can we be sure real GDP rises in the short run?
a. foreign economies expand and government purchases rise. b. foreign economies expand and government purchases fall. c. foreign economies contract and government purchases fall. d. foreign economies contract and government purchases rise.