A firm's production function is given by Q = 40KL, which combination of inputs does not lie on the isoquant Q = 40
A) L=1, K-2
B) L - 5.K - 1/5
C) L = 1, K = 1
D) L - 1/4, K= 4
Ans: A) L=1, K-2
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A) cyclical unemployment B) structural unemployment C) frictional unemployment D) voluntary unemployment
According to Keynesian coordination failure theory, the primary causes of business cycles are
A) shocks to aggregate demand. B) monetary factors. C) technology shocks. D) waves of self-fulfilling optimism and pessimism.
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Indicate whether the statement is true or false
At a ball game we can observe people eating hot dogs, french fries, and hamburgers. If all are priced the same and we observe Michelle eating a hot dog and David eating a hamburger, we can conclude that
A) Robert will be eating french fries. B) Michelle likes hot dogs better than David does and David likes hamburgers better than Michelle does. C) Michelle derives the same amount of utility from eating a hot dog as David derives from eating a hamburger. D) at this time Michelle derives more utility from eating a hot dog than from eating either a hamburger or french fries, while David derives more utility from eating a hamburger than from eating either a hot dog or french fries.