If a production technology has diminishing marginal product of all inputs throughout, then the producer choice set is convex.
Answer the following statement true (T) or false (F)
False
Rationale: It is possible for marginal product to be diminishing throughout but for the production frontier to still have increasing returns to scale. In that case, the producer choice set is non-convex
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When we say that money is a stock variable, we mean that
A) the quantity of money is measured at a given point in time. B) we must attach a time period to the measure. C) it is sold in the equity market. D) money never loses purchasing power.
If the correlation between GDP and y is 0.55, we say y is
A) procyclical. B) acyclical. C) countercyclical. D) tricyclical.
Which line might represent an immediate-short-run aggregate supply curve?
Refer to the graph above.
A. 1
B. 2
C. 3
D. 4
Refer to the diagrams, in which AD 1 and AS 1 are the "before" curves and AD 2 and AS 2 are the "after" curves. Other things equal, inflation is absent in:
A. panel (A) only.
B. panel (B) only.
C. panel (C) only.
D. panels (A) and (C).