Two countries, Rhodia and Rubium, have identical production functions of the form:
Y = A × K0.25 × H0.75
Both countries have the same amount of capital stock and use the same technology.
However, the total efficiency units of labor available in Rhodia is higher than that in Rubium. Which of the following is likely to be true in this case?
A) The poverty rate in Rhodia is likely to be higher than that in Rubium.
B) The gross domestic product of Rhodia is higher than that in Rubium.
C) The gross domestic product of Rubium is higher than that in Rhodia.
D) The Human Development Index of Rhodia is lower than that of Rubium.
B
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The level of long-run aggregate supply is affected by all of the following except
A) changes in the capital stock. B) changes in the number of workers. C) changes in the technology. D) changes in the price level.
Value-added taxes (VAT) are very popular in the United States.
A. True B. False C. Uncertain
A firm is a price taker if it
A) always sells its output at the industry-determined price. B) takes consumer demand into consideration in setting its price. C) takes its production costs into consideration in setting its price. D) uses a pricing strategy to gain market share.
The reason we study the sequential labor negotiation game:
a. Is to show that these games usually go on for rounds and rounds b. Is to show the importance of the first mover being able to commit to an offer c. Is to show the importance of the second mover being able to commit to an offer d. Is to show the problems of prisoners dilemmas