When an equal percentage increase in the factors of production raises real GDP by the same percentage, the production function has the characteristic known as
A) constant returns to scale.
B) constant marginal productivity.
C) diminishing marginal productivity.
D) increasing returns to scale.
A
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If banks operated under a 100 percent reserve system, commercial banks would not be able to create any further money
Indicate whether the statement is true or false
Income tax collections:
a. fall during periods of prosperity, thus increase federal budget deficits. b. rise during periods of prosperity, thus reduce federal budget deficits. c. fall during recessions, thus increase the problem of unemployment. d. rise during recessions, thus increase the problem of unemployment.
A key tool of countercyclical fiscal policy is
a. the interest rate b. the federal funds rate c. government spending d. the regulatory code e. Presidential executive orders
At a given output level, a monopolist earns a profit only if the
A. slope of its TR curve exceeds the slope of his or her TC curve. B. height of its MR curve exceeds the height of his or her MC curve. C. height of its demand curve exceeds the height of his or her MR curve. D. height of its demand curve exceeds the height of his or her ATC curve.