Sketch a long-run production function with isoquants numbered so that the graph clearly shows increasing returns to scale over the entire range of production.
What will be an ideal response?
The sketch should have isoquants numbered so that they have output increasing in greater proportion that the proportion of increase in the inputs.
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The unit of account is defined as
A) an object that is accepted in return for goods and services. B) the medium of exchange. C) the exchange of goods and services directly for other goods and services. D) barter. E) an agreed upon measure for stating prices of goods and services.
The process of allocating the total product among the resources involved is referred to as
a. geographic distribution. b. functional distribution. c. marketing distribution. d. frictional distribution.
Assume that the average salary for male professors at a university was $110,000 and the average salary for female professors at the same university was $95,000 . Based on this information, can we conclude that this university engages in gender discrimination? Why or why not?
Suppose for an economy, investment = $40; saving = $50, government spending + exports = 100; and taxes + imports = $110 . Then for this economy, total leakages exceed total injections by $20, so there will be pressure for the economy to contract
a. True b. False Indicate whether the statement is true or false