A supply shock that reduces total factor productivity directly affects which term in the production function Y = AF(K, N)?
A) A
B) F
C) K
D) N
A
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Refer to Table 3-3. The table contains information about the sorghum market. Use the table to answer the following questions
a. What are the equilibrium price and quantity of sorghum? b. Suppose the prevailing price is $6 per bushel. Is there a shortage or a surplus in the market? c. What is the quantity of the shortage or surplus? d. How many bushels will be sold if the market price is $6 per bushel? e. If the market price is $6 per bushel, what must happen to restore equilibrium in the market? f. At what price will suppliers be able to sell 36,000 bushels of sorghum? g. Suppose the market price is $14 per bushel. Is there a shortage or a surplus in the market? h. What is the quantity of the shortage or surplus? i. How many bushels will be sold if the market price is $14 per bushel? j. If the market price is $14 per bushel, what must happen to restore equilibrium in the market?
A rise in demand for restaurant meals is likely to cause which of the following in the short run?
a. economic losses for each restaurant b. a lower price for each restaurant meal c. fewer restaurants in the industry d. more restaurants in the industry e. economic profit for restaurants
When a low-income individual receives a transfer payment, that individual has less of an incentive to forgo leisure time for work time
a. True b. False Indicate whether the statement is true or false
At very high levels of output, total cost tends to:
A. decrease at an increasing rate. B. increase at a constant rate. C. increase at an increasing rate. D. increase at a decreasing rate.