The aggregate production function is bowed or concave because
A) of the diminishing marginal returns of labor.
B) restriction in capital mobility.
C) of the speed of payment systems.
D) the learning curve for labor.
A
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If Congress reduced the period of patent protection from 20 years to 10 years, what would likely happen to the amount of private research and development?
A. Shorter patent protection would make innovation less lucrative, so the amount of research and development would likely decline. B. Companies would simply stop their research and development. because the cost is not worth the return. C. Companies would spend more on research because the patent period is shorter. D. Companies would not likely change their research and development amounts because they need innovation to survive.
If a firm is a perfectly competitive purchaser of factor inputs and the wage rate is $5, the marginal factor cost for labor is
A) greater than $5. B) less than $5. C) $5. D) indeterminate.
Jen considers smoking an inferior good. In other words, for Jen to quit smoking, she would require a significant increase in income
a. True b. False Indicate whether the statement is true or false
For this question, assume productivity has been increasing by 5% per year. Also assume that workers' expectations of productivity growth adjust slowly over time. For this economy, a reduction in productivity growth from 5% to 2% will most likely cause which of the following to occur?
A) an increase in the natural rate of unemployment B) a reduction in the real wage C) an increase in the markup over labor costs D) all of the above E) none of the above