A production function shows the
A. Maximum quantity of inputs required to produce a given quantity of output.
B. Output capacity of the entire economy.
C. Minimum amount of output that can be obtained from alternative combinations of inputs.
D. Maximum output of a good attainable from different combinations of factor inputs.
Answer: D
You might also like to view...
Since 1982, banks and thrift institutions have offered a type of savings account that yields a market rate of interest with a minimum balance and a limit on transactions. These accounts, which have no minimum maturity, are known as
A) money market mutual funds. B) repurchase agreements. C) certificates of deposit. D) mutual funds.
Which of the following events could result in the consumption function shifting from CF0 to CF2?
A) an increase in disposable income B) an increase in expected future income C) a decrease in wealth D) a decrease in the real interest rate E) a decrease in disposable income The figure above shows two aggregate expenditure lines.
Scarcity implies that people must
A) be miserable. B) be selfish. C) make choices. D) not be selfish.
If the Fed decides to reduce bank reserves, it can
A) purchase government bonds. B) extend discount loans to banks. C) sell government bonds. D) print more currency.