Suppose the production function is Q = min{K, 2L}. How much output is produced when 4 units of labor and 9 units of capital are employed?
A. 9
B. 4
C. 8
D. 2
Answer: C
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If Cruise the World is in tacit collusion with three smaller cruise firms and Cruise the World consistently makes price changes that the other three firms then also make, this is an example of ________ by Cruise the World.
A) a precommitment B) price leadership C) a meet-the-competition clause D) a meet-or-release clause
Why is antitrust legislation necessary?
A. Monopolies tend to misallocate resources. B. Monopolies will always make a profit in the long run. C. Monopolies tend to allocate resources in a socially optimal manner. D. All monopolies are unlawful in the United States.
If GNP is $200 billion, receipts of factor income from the rest of the world are $10 billion, and payments of factor income to the rest of the world are $30 billion, then GDP is
A. $160 billion. B. $210 billion. C. $220 billion. D. $240 billion.
Capital has a life that typically
A. extends over many years. B. expires as it is being used. C. lasts for less than 1 year. D. never expires.