The Cobb-Douglas production function has which of the following properties?
a. output is a linear increasing function of each of the inputs
b. it provides a good fit to the traditional S-shaped production function
c. the elasticity of production is constant and equal to 1 minus the exponent of the appropriate variable
d. all of the above
e. none of the above
b
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Costs that pertain to finding a trading partner and making a trade are called
A) transaction costs. B) transgression costs. C) consumption costs. D) transaction taxes.
What is significant about a point on a graph at which an indifference curve is tangent to a budget constraint?
In an open economy under flexible exchange rates, a reduction in the interest rate will cause a reduction in which of the following?
A) investment B) the exchange rate, E C) net exports D) all of the above E) none of the above
Long-run equilibrium will occur at the price level at which
A. the long-run aggregate demand and short-run aggregate supply curves intersect. B. the aggregate demand and long-run aggregate supply curves intersect. C. the aggregate demand and short-run aggregate supply curves intersect. D. the short-run aggregate supply and long-run aggregate supply curves intersect.