Using the Cobb-Douglas production function, while holding other inputs constant, if the amount of a specific factor is increasing ________
A) the increased amount of output from an extra unit of input declines
B) the increased amount of output from an extra unit of input increases
C) that factor's share of output is declining
D) that factor's share of output is increasing
E) none of the above
A
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As shown in the above table, Sam enjoys sailing and skiing equally well. Which of the following is TRUE?
A) Sam will not consume the same number of hours of sailing and skiing if the price per hour of sailing is more than that of skiing. B) If the prices per hour of sailing and skiing are the same, Sam will not spend the same number of hours at each activity. C) The marginal utility of the 3rd hour of either sailing or skiing is 120. D) None of the above is true.
Producer surplus is the sum of the profits earned by all firms in a market
Indicate whether the statement is true or false
The normal rate of unemployment around which the unemployment rate fluctuates is called cyclical unemployment
a. True b. False Indicate whether the statement is true or false
For a worker, the opportunity cost of an hour of leisure
a. rises by $8 when his wage rises by $8 per hour. b. falls by $8 when his wage rises by $8 per hour. c. is the same for a celebrity talk-show host as it is for a teacher. d. is determined by factors that are unrelated to his hourly wage.