Suppose that the production function for the economy is: Y = AK1/4L3/4. Assume that A = 1,000, the capital stock is $32,000 billion, and the current labor force is 120 million (or 0.120 billion) workers
All else equal, if the labor force increased by 20 million workers, the value of the marginal product of capital will be A) $0.0104.
B) $0.0239.
C) $0.0639.
D) $0.0717.
B
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The data presented in the text shows that in the period from 1947-2013, real GDP in the United States has
A) decreased in every year since 1947. B) generally remained the same. C) decreased only in recent years. D) increased substantially.
What is a Nash equilibrium? Is this equilibrium the best outcome for the players? Give an example
What will be an ideal response?
The concept that suggests that given the available inputs and technology, it is impossible to produce more of one good without decreasing the quantity that is produced of another good is:
a. the law of supply. b. balanced production. c. productive efficiency. d. effective demand.
In the long run
A. all firms must make economic profits. B. a firm can vary all inputs, but it cannot change the mix of inputs it uses. C. there are no fixed factors of production. D. a firm can shut down, but it cannot exit the industry.