The Cobb-Douglas production function F(L,K) = AL?K? will exhibit decreasing returns to scale when:
A. ? + ? = 1.
B. ? + ? < 1.
C. ? + ? > 1.
D. ? + ? = 0.
B. ? + ? < 1.
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The effect of a legal minimum wage set above the equilibrium wage rate is
A) an excess quantity of labor demanded. B) an excess quantity of labor supplied. C) an increase in the quantity of labor demanded. D) a decrease in quantity of labor supplied.
Suppose that the CPI in 2009 is 220 and that the inflation rate is 5% in 2010 . What is the CPI in 2010?
When overall production is taken into account, trade restrictions, such as those enacted by the Smoot-Hawley trade bill,
A) save good paying jobs. B) reduce imports, without affecting the volume of exports. C) increase employment in the domestic industries that are most productive. D) neither create nor destroy jobs; they
Which of the following statements is correct?
A. Export sales are not important to U.S. industries because U.S. GDP is so large. B. Many U.S. industries are very dependent on export sales. C. The United States is increasingly dependent on exports, but not on imports. D. The United States would not be affected if it quit importing goods.