Suppose the production function for T-shirts can be represented as q = L0.25 K0.75. Show that the marginal productivity of labor diminishes in the short run
What will be an ideal response?
In the short run, MPL = 0.25 ? (q/L). The change in MP with respect to L equals d(MP)/dL = -0.25 ? q/L2. Thus for all levels of labor hired, MP falls as L increases.
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Refer to the figure below. If the price rises from $10 to $14, what will happen to the price elasticity of supply? 
A. It stays the same. B. It decreases. C. It increases. D. This cannot be determined from the information provided.
Total income is defined as
A) the total amount earned by all resource owners. B) the sum of the total receipts of firms and the amount earned by households. C) the sum of the total receipts of firms less the amount of tax that must be paid. D) the total receipts of firms before taxes.
If the economy's real GDP is growing at 3 percent each year and velocity is constant, for the price level to increase:
a. the money supply would have to grow at more than 3 percent per year. b. the money supply would have to grow at exactly 3 percent per year. c. the money supply would have to grow at less than 3 percent per year. d. the money supply would have to remain stable.
In 2012, approximately what percent of the national debt was held by federal government agencies?
a. 1 percent b. 19 percent c. 29 percent d. a little more than 80 percent