Microeconomics

The general equilibrium analysis of a minimum wage applied to only som

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 […]

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Date: September 9th, 2020

General equilibrium analysis is the study of A) how an equilibrium is

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  

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Date: September 9th, 2020

Non-neutral technological change is more valuable to labor than neutra

Non-neutral technological change is more valuable to labor than neutral technological change. Indicate whether the statement is true or false   ANSWER True . Neutral technological change leaves the proportion in which inputs are used (for example, the labor/capital ratio) unchanged, but non-neutral technological changes are innovations that alter the labor/capital ratio. The labor/capital ratio […]

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Date: September 9th, 2020

In the Primary Metals industry, it is estimated that the elasticity of

In the Primary Metals industry, it is estimated that the elasticity of output with respect to labor is 0.51 and the elasticity of output with respect to capital is 0.73. These two measures indicate that the primary metals industry is characterized by A) decreasing returns to scale. B) constant returns to scale. C) increasing returns […]

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Date: September 9th, 2020

Does this production function, q = 10L0.5K0.3, experience increasing,

Does this production function, q = 10L0.5K0.3, experience increasing, decreasing or constant returns to scale? A) Decreasing because a 100% increase in inputs increases outputs by 80%. B) Increasing because an 80% increase in inputs increases outputs by 100%. C) Decreasing because 0.5 + 0.3 < 1. D) A and C.   ANSWER D  

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Date: September 9th, 2020

In the food and kindred products industry, it is estimated that the el

In the food and kindred products industry, it is estimated that the elasticity of output with respect to labor is 0.43 and the elasticity of output with respect to capital is 0.48. These two measures indicate that the primary metals industry is characterized by A) decreasing returns to scale. B) constant returns to scale. C) […]

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Date: September 9th, 2020