The relationship between the inputs employed by a firm and the maximum output that it can produce with those inputs is the firm's
A) production function. B) marginal product of labor.
C) average product of labor. D) supply curve, or supply schedule.
A
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We would expect the relationship between the risk spread on Baa bonds and U.S. Treasury securities of similar maturities to:
A. vary directly with economic growth. B. be uncorrelated with economic growth. C. vary inversely with economic growth. D. show no variation over the business cycle.
An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the opportunity cost for Paula to produce one shirt?
A. 4 computers B. ¼ computer C. ½ computer D. 2 computers
The quantity demanded of an input normally rises as its price rises.
Answer the following statement true (T) or false (F)
An increase in supply, holding demand constant, will cause:
a. Higher prices and a larger quantity sold b. Lower prices and a larger quantity sold c. Higher prices and a smaller quantity sold d. Lower prices and a smaller quantity sold