An improvement in the quality of capital would:
a. rotate the per-worker production function upward
b. make the per-worker production function flatter.
c. shift the per-worker production function downward.
d. rotate the per-worker production function downward.
e. have no effect on the per-worker production function.
a
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Freedom of entry into a market tends to preserve
A) competition. B) abnormal profits. C) social justice. D) the gap between the price of a good and marginal cost.
The ultimate source of liquidity in a modern industrial economy is the
A) government Treasury. B) central bank. C) capital market. D) liquidity market.
If you have a checking account at a local bank, your bank account there is a(n)
A. asset to the bank and an asset to you. B. liability of the bank and a liability of yours. C. liability of the bank and an asset to you. D. asset to the bank and a liability of yours.
Assume the total product of two workers is 110 and the total product of three workers is 120. The three worker's average product is ________ while the third worker's marginal product is ________.
A. 50; 10 B. 40; 10 C. 120; 110 D. 40; 20