The aggregate production function is Y = 3KL. If there are 30 units of capital and 40 units of labor, aggregate output is
A. 3,600 units.
B. 2,500 units.
C. 2,100 units.
D. 400 units.
Answer: A
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Cindy's attitudes towards risk are summarized by the utility function U(w) = . Cindy has an initial wealth of $100. There is a 10% chance that her home will sustain flood damage next year costing her $40 in repairs
What is the most she will pay to for a full $40 of flood insurance?
Suppose you observe a decrease in the equilibrium price and quantity of corn. Of the options listed below, this is best explained by:
A. a decrease in the cost of growing corn. B. an increase in the cost of growing corn. C. a fall in consumer income assuming corn is a normal good. D. a rise in consumer income assuming corn is a normal good.
In an open economy, the quantity supplied of TVs in the domestic market will be ________.
A. 120,000 B. 90,000 C. 30,000 D. 60,000