According to the adaptive expectations theory, people form their expectations of the future on the basis of recent experiences
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose the stock of capital remains constant. By adding more labor, perhaps a second work shift, output
A) remains the same. B) decreases. C) increases. D) becomes more costly.
If a firm's production process exhibits increasing returns to scale, then doubling all the firm's inputs will lead output to ________.
A. less than double. B. fall by one-half. C. more than double. D. double.
A cafeteria is willing to produce 100 bottles of soda when the price is $1 and 150 bottles of soda when the price is $1.30, other things being equal. The price elasticity of supply of soda is
A. 0.10. B. 0.67. C. 1.53. D. 0.50.
The maximizing behavior of individuals and firms determines society's three main allocation decisions:
A) which goods are produced, how they are sold, and who gets them. B) which goods are produced, how they are produced, and who finances them. C) which goods are imported, how they are stored, and who gets them. D) which goods are produced, how they are produced, and who gets them.