If a firm's production function is Leontief and the wage rate goes up, the:
A. firm must use more labor in order to minimize the cost of producing a given level of output.
B. firm must use less labor in order to minimize the cost of producing a given level of output.
C. cost minimizing combination of capital and labor does not change.
D. firm must use more capital in order to minimize the cost of producing a given level of output.
Answer: C
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Without the stockholders' limited liability, the risk from the use of leverage would:
A. still be the same. B. be significantly greater. C. be significantly less. D. be irrelevant.
To conduct a general equilibrium analysis of a change in consumer preferences away from beef and toward chicken, you must consider
A. changes in the price of resources allocated to the production of beef and chicken. B. changes in the amount of resources allocated to the production of beef and chicken. C. changes in the equilibrium prices and quantities of beef and chicken. D. all of the above
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
All of the following were provisions of the 2009 American Reinvestment and Recovery Act except
A) a temporary extension of unemployment benefits. B) expanded tax credits for parents for their children's college tuition. C) a reduction in government-funded infrastructure spending. D) a reduction in employees' payroll tax contributions.