Which of the following is true of a production function?
A. It specifies the expenses a firm can incur as a result of a production process.
B. It specifies the maximum feasible output that can be produced for given amounts of inputs.
C. It specifies the maximum revenue that a firm can generate by selling its output.
D. It specifies the amount of goods that can be purchased in a market at a given price.
Answer: B
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The two types of trade, intertemporal and pure asset swap ________ perfect substitutes, because ________
A) are; they both offer considerable payoff and are equal in the long run B) are; they both involve the smoothing out of now and future consumption C) are not; asset swapping is immediate and involves only assets, while intertemporal trade takes two time periods and involves both assets and goods/services D) could possibly be; different economic states occur at different points in time E) are not; asset swapping never relates to intertemporal trade
The International Monetary Fund has a "quasicurrency" called
a. the Special Drawing Right. b. the Voluntary Export Restraint. c. the Monetary Trilemma. d. the Euro Dollar.
The effect of a decline in taxes on the level of income will differ somewhat from an increase in government expenditures of the same amount because
A. the MPC that applies to the incomes of households always exceeds the MPC that applies to business incomes. B. tax declines tend to be more expansionary. C. the multiplier is high when the MPS is low. D. households may not spend all of an increase in disposable income.
GDP per capita is:
A. the amount of GDP produced per unit of capital equipment. B. GDP divided by the total population. C. the amount of GDP produced by an individual state. D. GDP multiplied by the total population.