In a particular production process, if the quantities of all inputs used are increased by 60%, then the quantity of output increases by 60% as well. This means that
a. the production process cannot be enhanced by technological advances.
b. no mathematical representation of the relevant production function can be formulated.
c. the relevant production function has the limits-to-growth property.
d. the relevant production function has constant-returns-to-scale.
d
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What is the order in which an economy tries to solve the issue of resource allocation?
A. Production planning, distribution, and output selection B. Output selection, production planning, and distribution C. Production planning, output selection, and distribution D. Distribution, production planning, and output selection
Markets are best defined as
A) arrangements where buyers and sellers get together to buy and sell. B) specific geographic locations where people get together to buy and sell. C) hypothetical constructs used to analyze how people form their tastes and preferences. D) places where people can inspect goods and services carefully.
The absence of cyclical unemployment means the economy is at the natural unemployment rate
Indicate whether the statement is true or false
Suppose a tax on sellers has been imposed in the graph shown. The amount of deadweight loss generated by this tax is:
A. $0.
B. $80.
C. $160.
D. $129.50