Which of the following statements is NOT true about the production function?
A) It gives the maximum output that can be obtained for a given level of inputs.
B) A new production function does not have to be developed when there is technical progress since technology is included in the function.
C) The production function depends upon the level of technology available to the firm.
D) It specifies the cost of inputs necessary to produce a certain level of outputs.
Answer: B
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Which of the following does NOT help organize trade?
A) property rights B) markets C) the production possibilities frontier D) None of the above because all these answers given help organize trade.
PPP holds better for ________ countries
A) low-inflation B) poor C) rich D) high-inflation
Teaser interest rates refer to
A) the initial rates that are typically below market rate and are offered by lenders to entice the clients to borrow. B) mortgage rates. C) rates charged on all subprime mortgages. D) none of the above.
What is most likely used to create a common denominator between countries’ GDP in the long run?
a. GDP deflator b. market exchange rate c. purchasing power parity d. nominal value