We have worked a lot with homothetic production technologies. Suppose instead that a production process that uses capital and labor is quasilinear in capital and that capital is fixed in the short run. Then, assuming the firm currently profit maximizes at a given wage and rental rate, the short and long run slices of the production frontier are identical.
Answer the following statement true (T) or false (F)
True
Rationale: The quasilinearity of capital implies that the TRS is constant along horizontal lines in our usual isoquant graph. In the short run, we are restricted to such horizontal lines because capital is fixed in the short run.
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Refer to Figure 7.1. Dudley values silence at
A) $100. B) $200. C) $350. D) $550.
For any given increase in spending that is not directly caused by an increase in income, the impact on equilibrium GDP is greater than the initial spending increase
Indicate whether the statement is true or false
If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the money supply is ________ billion
A) $10,000 B) $4000 C) $1400 D) $10,400
Refer to the information provided in Figure 19.1 below to answer the question(s) that follow. 
Figure 19.1 Refer to Figure 19.1. After firms can respond to the payroll tax, there will be an
A. equilibrium in the labor market. B. excess demand for labor of 100 units. C. excess supply of labor or 100 units. D. excess supply of labor of 150 units.