The production function
A. gives the maximum amount of output for a given level of inputs.
B. allows us to compute the difference between accounting and economic profits.
C. gives the amount of time necessary to reach the long run.
D. gives the implicit costs for all inputs.
Answer: A
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If the Chinese government sets a price ceiling below the equilibrium price, the result will be to
A) increase total surplus. B) create deadweight loss. C) increase surplus and create deadweight loss. D) eliminate deadweight loss.
Refer to the Article Summary. The unexpected increase in the supply of oil mentioned in the article summary resulted in a decrease in the price of oil
After an unexpected decrease in the price of oil, the long-run adjustment ________ the price level and ________ the unemployment rate as they return to their original levels. A) increases; increases B) decreases; increases C) increases; decreases D) decreases; decreases
A difference between moral hazard and adverse selection is that
a. moral hazard deals with pre-contractually determined public information b. moral hazard deals with post-contractually determined private information c. adverse selection deals with pre-contractually determined private information d. adverse selection deals with post-contractually determined public information
Suppose the growth rate of GDP in the United States is 4.2 percent. If 1.1 percent and 1.4 percent of GDP growth are due, respectively, to capital and labor growth, the amount resulting from technological progress is:
A. 0.3 percent. B. 1.1 percent. C. 1.4 percent. D. 1.7 percent.