A general equilibrium analysis of a price change in the corn chip market would include an investigation of the impacts in A) the television market. B) the coffee market. C) the salsa market. D) All of the above. ANSWER C
Date: September 9th, 2020
Dell computers has increased production efficiency by A) producing output with fewer inputs. B) expanding the amount of inputs used. C) outsourcing production. D) relying on decreasing returns to scale. ANSWER A
Date: September 9th, 2020
If a technological change occurs such that the production function shifts from q = 10K0.5 L0.5 to q = 10.5K0.3 L0.5, then the technological change is A) both neutral and non-neutral. B) neutral. C) non-neutral. D) Not enough information given. ANSWER A
Date: September 9th, 2020
Suppose firms A and B each make T-shirts. Firm A’s production function is q = L0.5K0.5. Firm B’s production function is q = 1.2 L0.5K0.5. If the two firms each hire the same amounts of capital and labor, compare the two firms in terms of APL and MPL. What will be an ideal response? […]
Date: September 9th, 2020
The implementation of the assembly line is an example of how A) changes in the organization of production improve productivity. B) neutral technical change improves productivity. C) non-neutral technical change can decrease productivity. D) labor saving technical change increases economy-wide unemployment. ANSWER A
Date: September 9th, 2020
Technical and organizational change A) typically reduces prices by increasing the supply of the product, ceteris paribus. B) typically reduces prices by decreasing the demand for the product, ceteris paribus. C) typically increases prices by increasing the demand for the product, ceteris paribus. D) typically increases prices by decreasing the supply for the product, ceteris […]
Date: September 9th, 2020
The cost of waiting two months for health care to address a debilitating problem in Canada is most accurately described as A) an explicit cost. B) an accounting cost. C) no real cost. D) an opportunity cost. ANSWER D
Date: September 9th, 2020
Economic efficiency entails A) producing a given amount of output with the most expensive mix of inputs. B) producing a given amount of output with the least number of inputs. C) producing a given amount of output with the most inputs. D) producing a given amount of output with the cheapest mix of inputs. […]
Date: September 9th, 2020
The general equilibrium analysis of a minimum wage applied to only some sectors of the economy suggests that A) workers in all sectors will face increased wages. B) some workers in the covered sectors will lose their jobs and remain unemployed. C) some workers originally employed in the covered sectors will move to the uncovered […]
Date: September 9th, 2020
General equilibrium analysis is the study of A) how an equilibrium is determined in all markets simultaneously. B) how an equilibrium is determined in all closely related markets. C) the effects of a change in a market, and all spillover effects in all related markets. D) Any of the above. ANSWER D
Date: September 9th, 2020
