Consider the Cobb-Douglas production function F(L,K) = AL?K?. Which of the following statements is true?
A. Increases in ? increase labor's productivity and raise MRTSLK.
B. Decreases in ? increase labor's productivity and raise MRTSLK.
C. Increases in ? increase labor's productivity and lower MRTSLK.
D. Changes in ? will not affect MRTSLK.
A. Increases in ? increase labor's productivity and raise MRTSLK.
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Use the following figure to answer the question below.
A point on the production possibilities frontier in the figure above is
A. not attainable. B. inefficient. C. local. D. efficient.
The production possibilities frontier will shift if there is a change in
a. technology b. unemployment c. product prices d. society's preferences for commodities e. the quantities of the two goods being produced
If money was not used as a medium of exchange,
A) the transaction costs of exchange would be lower. B) our standard of living would probably improve. C) economic efficiency would increase. D) the gains from trade would be severely limited.
In order to change the money supply, the Fed might use which of the following tools?
A. Dual mandate B. Reserve requirement C. Deficit spending D. Fiscal policy