Suppose the production function for a certain device is q = L + 2K. If a neutral technical change has occurred, which of the following could be the new production function?
A) q = L + 5K
B) q = 5 ? (L + K)
C) q = 2L + 4K
D) All of the above are possible.
C
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If a good has an income elasticity of 1.83, then it:
A. is a normal good, and a necessity. B. is an inferior good, and a necessity. C. probably has a lot of close substitutes available. D. is a luxury.
In general, GDP per capita is highly correlated with alternative measures of quality of life
a. True b. False Indicate whether the statement is true or false
Deepening human capital involves
a. increasing the number of workers. b. increasing the number of machines per worker. c. increasing the levels of education per worker. d. using more machines than workers.
Price controls
A) do not include black markets. B) are another name for the price system. C) do not include rent controls. D) interfere with the rationing function of prices.