The Cobb-Douglas production function is: Q = 1.4*L0.6*K0.5 . What would be the percentage change in output (%?Q) if labor grows by 3.0% and capital is cut by 5.0%? [HINT: %?Q = (EL * %?L) + (EK * %?K)]
a. %?Q = + 3.0%
b. %?Q = + 5.0%
c. %?Q = - 0.70%
d. %?Q = - 2.50%
e. %?Q = - 5.0%
c
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According to the graph above, the last expansion to occur before the outbreak of World War I in 1914 had a duration of ________
A) 23 months B) 44 months C) 3 years D) 12 months E) 20 months
Consider a situation in which the government has limited information about costs and benefits of pollution abatement associated with a given industry
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Analysis that is limited to making either purely descriptive statements or scientific predictions is
A) positive economics. B) normative economics. C) microeconomics. D) macroeconomics.
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A. Is relatively independent; an oligopoly is interdependent. B. Has high barriers to entry; an oligopoly does not. C. Has no market power; an oligopoly has some market power. D. Faces a horizontal demand curve; an oligopoly does not.