Answer the following statement(s) true (T) or false (F)
1. All baskets of labor and capital capable of producing a given level of output are technologically efficient.
2. The Marginal Rate of Technical Substitution can be expressed as the ratio of the Marginal Productivities of Labor and Capital.
3. Output is held fixed along an isocost.
4. Moving down and to the right on an isoquant tells us how much quantity increases as inputs increase.
5. Like a family, a firm faces a fixed level of expenditure and therefore must choose one point along a particular isocost line.
1. False
2. True
3. False
4. False
5. False
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Answer the following statement(s) true (T) or false (F)
1. Nonexcludability refers to the possibility that the benefits of consumption can be shared. 2. The market demand for a public good such as environmental quality is found as the horizontal sum of all the individual demands for that good. 3. If the market for a public good is comprised of two consumers, 1 and 2, who have individual demands of p1 = 100 – 0.2QD and p2 = 250 – 0.5QD, then the market demand function would be P = 350 – 0.7QD. 4. If the third-party effects of a good generate benefits to a third party, it is a positive externality. 5. If MSC = 40.0 + 0.25Q, and MPC = 40.0 + 0.14Q, then production is associated with an externality specified as MEC = 40.0 + 0.36Q.
What do the legislative and implementation lags have in common?
A) They are both more important for monetary than fiscal policy. B) They are both more important for fiscal than monetary policy. C) They are both harder to measure but less variable than the effectiveness lag. D) They both take place before the data and recognition lags. E) none of the above
Credit cards are a popular means of payment. Why are credit card accounts not included in M1 or M2? Are credit cards of no relevance to these money measures?
What will be an ideal response?
If a union succeeds in forcing employers in a perfectly competitive product market to increase wages above the equilibrium level, then the level of unemployment
A) will increase. B) will remain constant. C) will decrease. D) may increase or decrease.