If your firm's production function has constant returns to scale, then if you double all your inputs, your firm's output will
a. double and productivity will rise.
b. double but productivity will not change.
c. more than double and productivity will rise.
d. more then double but productivity will not change.
b
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Suppose the firms in a perfectly competitive industry are earning positive economic profits
How will these positive profits affect the flow of resources into the industry? How will the equilibrium quantity and price change in the industry because of the profits?
Risk sharing is profitable for financial institutions due to
A) low transactions costs. B) asymmetric information. C) adverse selection. D) moral hazard.
If Tom wants to not be hit, what strategy could he follow
a. Threaten to not tell b. Always not tell c. Threaten to tell d. All of the above
A survey showed that in each of the past 12 months there was one person who was unemployed who worked in all other months. There were also two people who were unemployed for all 12 months. What percentage of the unemployment spells during the year was short term, and what percentage of the unemployment in a given month was long term?
a. 75% was short term; 33.3% was long term b. 75% was short term; 66.7% was long term c. 85.7% was short term; 33.3% was long term d. 85.7% was short term; 66.7% was long term