If the elasticity of substitution of a production function is equal to zero, then this production function is a
A) linear production function
B) fixed proportion production function
C) Cobb-Douglas production function
D) None of above.
B
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Financial intermediaries bring suppliers and demanders together in the market for
a. checks b. loanable funds c. saving d. physical capital e. income
If the consumer gets 90 utils from consuming four movies, 120 utils from consuming five movies, and 140 utils from consuming six movies, calculate the consumer's marginal utility from the fifth and sixth movies.
What will be an ideal response?
Which of the following would decrease the unemployment rate?
A) an increase in the minimum wage B) an increase in the efficiency wage C) an increase in labor union membership D) government aid to retrain unemployed workers