Assume a firm is currently employing 20 units of capital and 100 units of labor in its production process. Assume also that the marginal product of the 20th unit of capital is 40 units of output, the marginal product of the 100th unit of labor is 10 units of output and the per unit prices […]
Date: September 10th, 2020
Which of the following best describes the basic characteristics of noncooperative oligopoly models? A) Managers make decisions based on the strategy they think their rivals will pursue. B) Managers attempt to deliberately mislead their rivals regarding the strategy they will pursue. C) When making decisions, managers basically ignore the mutual interdependence that exists among rivals. […]
Date: September 10th, 2020
The rate of inflation measures the change in the relative prices of the goods and services produced in the macroeconomy over a specified period of time. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
A labor-intensive method of production is one that: A) requires employees to work harder than they would in other occupations. B) relies exclusively on labor. C) relies on large quantities of labor and smaller quantities of capital equipment. D) combines a small but sophisticated labor force with a large amount of capital. ANSWER C
Date: September 10th, 2020
According to the kinked demand curve model, if an oligopolistic firm lowers its price, it should expect to see its total revenue: A) increase. B) stay the same. C) decrease D) cannot be determined without more information. ANSWER C
Date: September 10th, 2020
A production method that relies on large quantities of machines and equipment and smaller quantities of labor is referred to as a: A) variable-input-intensive method of production. B) labor-intensive method of production. C) technology-intensive method of production D) capital-intensive method of production. ANSWER D
Date: September 10th, 2020
Demand for a good will tend to be more price elastic if it exhibits which of the following characteristics? A) It accounts for a small part of the consumer’s total income. B) The good has many available substitutes. C) It is a non-durable (as opposed to a durable good). D) There is little time for […]
Date: September 10th, 2020
In the case of a short-run production function: A) all of the inputs are variable. B) the amount of labor employed is held constant. C) at least one of the inputs is fixed. D) all of the inputs are fixed. ANSWER C
Date: September 10th, 2020
If a country’s national government wants to stimulate spending in the economy, it should: A) decrease taxes and increase government spending. B) increase taxes and decrease government spending. C) increase taxes and government spending. D) decrease taxes and government spending. ANSWER A
Date: September 10th, 2020
Assume an analyst has been hired to estimate the price elasticity of demand for hamburger (which sells for about $2.30 per pound) and filet mignon (which sells for about $20 per pound), respectively. Considering the different determinants of the price elasticity of demand and assuming the consumers in both markets have approximately the same incomes, […]
Date: September 10th, 2020
