Which is a typical property of the production function?
A. constant returns to scale
B. the MPL increases as capital input increases
C. the MPK increases as the labor input increases
D. all of the above
Answer: D. all of the above
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The ability of a good or service to satisfy a want is known as
a. tangibility. b. desirability. c. utility. d. satisfying.
The concept of Say's law can be summed up by the phrase,
A) "supply creates its own demand." B) "demand creates its own supply." C) "supply and demand are equivalent concepts." D) "supply and demand are irrelevant concepts."
The idea that money has "time value" refers to the fact that:
A. people prefer to receive a given sum of money in the future rather than in the present. B. money can be used to purchase the services of labor, as measured in hourly units. C. a specific amount of money is more valuable to a person the sooner it is received. D. compound interest converts future dollars into a greater amount of current dollars.
Refer to the information provided in Figure 6.15 below to answer the question that follows.
Figure 6.15Refer to Figure 6.15. Why is Jason not maximizing his utility at point C?
A. He is not spending his entire budget. B. His marginal utility per dollar spent on the last sandwich is less than his marginal utility per dollar spent on his last hot dog. C. His marginal utility per dollar spent on the last sandwich is greater than his marginal utility per dollar spent on his last hot dog. D. He is maximizing his utility at point C.