Suppose the production function is given by Q = 4K + 6L. What is the average product of capital when 10 units of capital and 5 units of labor are employed?
A. 7
B. 10
C. 5
D. 14
Answer: A
You might also like to view...
The reason that higher interest rates reduce aggregate demand in an open economy with capital flows is that investment
A. increases generated by higher interest rates are offset by net export decreases. B. decreases generated by higher interest rates are coupled with net export decreases. C. decreases generated by higher interest rates are offset by net export increases. D. increases generated by higher interest rates are coupled with net export increases.
With a good on each axis, the production possibilities frontier is downward-sloping, which suggests
A) there is no limit to the amount of each good that can be produced. B) the production of one good ultimately means sacrificing production of the other. C) there are no opportunity costs of producing either of the goods. D) All of the above are true.
A major difference between monopolistic competition and perfect competition is
A) that products are not standardized in monopolistic competition unlike in perfect competition. B) the barriers to entry in the two markets. C) the degree by which the market demand curves slope downwards. D) the number of sellers in the markets.
Any terms of trade within the limits set by domestic opportunity costs will be mutually harmful, because each country tries to push the other as close to the limits of the terms of trade as possible
a. True b. False Indicate whether the statement is true or false