A supply shock that reduces total factor productivity directly affects which term in the production function Y = AF(K, N)?
A. A
B. K
C. F
D. N
Answer: A
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A) might; will never B) will never; might C) might; might D) will never; will never E) will definitely; will never
A family on a trip budgets $800 for meals and hotel accommodations. Suppose the price of a meal is $40 . In addition, suppose the family could afford a total of 8 nights in a hotel if they don't buy any meals. How many meals could the family afford if they gave up two nights in the hotel?
a. 1 b. 2 c. 5 d. 8
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A. tax A and B but not C. B. tax A, B, and C equally. C. tax C but not A and B. D. You need to know the volume of sales to determine the answer.
Adverse selection will occur in a market as a result of
A) asymmetric information. B) moral hazard. C) the sale of "lemons." D) rational ignorance.