In the long-run production function, all of the inputs to the production process are allowed to vary. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Referring to the previous question, all else constant, a one unit increase in the price of good Y would cause the quantity demanded of good X to: A) decrease by 2 units. B) increase by 2 units. C) decrease by 1 unit. D) decrease by 5 units. ANSWER A
Date: September 10th, 2020
When the percentage change in price is greater than the corresponding change in quantity demanded, demand is inelastic. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The fact that a firm is using a capital-intensive method of production means that input substitution is not possible. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
“Supply” is best defined as the relationship between: A) the current price of a good and the quantity supplied at that price. B) the price of a good or service and the quantity supplied by producers at each price during a period of time. C) the cost of producing a good and the price consumers […]
Date: September 10th, 2020
In the prisoner’s dilemma game, each player’s dominant strategy is also the Nash equilibrium. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
If desired spending is less than output, then firms: A) accumulate their inventories and cut production. B) deplete their inventories and cut production. C) deplete their inventories and increase production. D) accumulate their inventories and increase production. ANSWER A
Date: September 10th, 2020
If movies on DVD for home rental and movies seen at a theater are substitutes, and the price of movies seen at a theater increases, the demand for movies on DVD will: A) increase. B) stay the same. C) decrease. D) cannot be determined. ANSWER A
Date: September 10th, 2020
The slope of the aggregate expenditure function is the sum of the: A) marginal propensity to consume and marginal propensity to save. B) marginal propensity to consume and marginal propensity to invest. C) marginal propensity to consume, marginal propensity to save, and marginal propensity to import. D) marginal propensity to consume, marginal propensity to invest, […]
Date: September 10th, 2020
Graphically, all else constant, a decrease in the price of labor would be illustrated by: A) a parallel shift of the isocost line in toward the origin. B) rotating the isocost line away from the origin along the labor axis. C) a parallel shift of the isocost line away from the origin. D) rotating the […]
Date: September 10th, 2020
