Constant returns to scale in a production function imply that doubling both capital and labor will also double output.
a. true
b. false
Ans: a. true
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Patrick lives near two gas stations, Exxon and Shell. If Exxon decreases the price of gas, we predict that the quantity of gasoline demanded at Shell will
A) decrease because Exxon and Shell gas are complements. B) decrease because Exxon and Shell gas are substitutes. C) increase because Exxon and Shell gas are substitutes. D) increase because Exxon and Shell gas are complements. E) not change Exxon and Shell are different brands of gasoline.
What effect do unions have on the labor market?
a. higher wages and fewer workers b. higher wages and more workers c. lower wages and fewer workers d. lower wages and more workers
The difference between the sale value of the product and the value of the inputs that went into it is called the:
A. value-added of that stage of production. B. profit margin. C. mark up. D. value of the final product.
What has income per person done during the past 200 years?
What will be an ideal response?