A production function measures how an individual maximizes utility
a. a firm transforms output into input.
b. a firm transforms inputs into output.
c.
d. a firm minimizes cost.
b
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Research on the effects of recessions on the real level of GDP shows that
A) recessions cause only temporary reductions in real GDP, which are offset by growth during the expansion phase. B) recessions cause large, permanent reductions in the real level of GDP. C) recessions cause both temporary and permanent declines in real GDP, but most of the decline is temporary. D) recessions cause both temporary and permanent declines in real GDP, but most of the decline is permanent.
If a foreign currency becomes more expensive in United States dollars, we would expect
a. U.S. exports to increase b. U.S. imports to increase c. U.S. exports to remain constant d. U.S. exports to decrease e. the quantity of foreign currency demanded in the United States to rise
A rational person:
A. makes choices based on added benefits and added costs. B. considers the financial benefits and financial costs of making a choice. C. undertakes activities until the net benefits become less than zero. D. makes choices based on total benefits and total costs.
Exhibit 10-12 Income distribution for three countries QuintileCountry I (%) Country II (%) Country III (%) Poorest 6 8 4 Second12 12 8 Third15 15 10 Fourth27 30 30 Richest40 35 48 Exhibit 10-12 shows the percentage of income received by each population quintile. From this chart we can conclude:
A. Country I has the most unequal income distribution. B. Country III has a more equal income distribution than Country II. C. Country II has the most unequal income distribution. D. Country II has the most equal income distribution.