An increase in the capital stock will:
A. shift the production function downward.
B. shift the production function upward.
C. flatten the production function.
D. steepen the production function.
Answer: B
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Which of the following is not an example of a barrier to entry?
a. Mighty Mitch's Mining Company owns a unique plot of land in Tanzania, under which lies the only large deposit of Tanzanite in the world. b. A pharmaceutical company obtains a patent for a specific high blood pressure medication. c. A musician obtains a copyright for her original song. d. An entrepreneur opens a popular new restaurant.
Over the last 35 years, the wage gap between people of different education levels has ______.
a. widened b. narrowed c. disappeared d. not changed
DASH Airlines is considering the addition of a flight from Red Cloud to David City. The total cost of the flight would be $1,100, of which $800 are fixed costs already incurred. Expected revenues from the flight are $600. DASH should:
A. not add this flight because only flights that cover their full costs are profitable. B. not add this flight because it is not profitable at the margin. C. add this flight because marginal revenue exceeds marginal costs and total revenue exceeds total variable cost. D. not add this flight because total costs exceed total revenue.
What are the two primary sources of economic growth in China since 1980?
What will be an ideal response?