The matching function exhibits all of the following properties except
A) diminishing marginal product of labor.
B) constant returns to scale.
C) increasing in matching efficiency.
D) increasing in inputs of searching consumers and firms.
A
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Why is portfolio diversification so important in international trade?
What will be an ideal response?
Status-quo bias is:
A. a type of mental barrier to saving. B. when people actively make decisions to change something, even if it is fairly difficult to do so. C. not overcome in the SMarT program because saving is the default option. D. when people have a negative view on the status quo.
In the aggregate expenditures model, if an economy operates above equilibrium GDP, there will be:
a. unplanned inventory accumulation. b. unplanned inventory depletion. c. an increase in GDP. d. an increase in employment.
A constant-cost industry
A. is one in which an increase in demand is matched by a proportional increases in long-run supply. B. has a downward sloping long-run supply curve. C. generates increasing profits whenever demand increases because the new long-run equilibrium price is above the old price even though average costs have not changed. D. has a horizontal long-run supply curve.